Law on Natural Resources Reviewer

LAW ON NATURAL RESOURCES REVIEWER Black’s Law Definition of Natural Resources Black’s first definition in his 7 th ed. is “any material from nature having potential economic value or providing for the sustenance of life, such as timber, minerals, oil, water and wildlife.” The second definition is “environmental features that serve a community’s well-being or recreational interests, such as parks.” Black’s (Sixth edition, 1990), defined natural resources as “any material in its native state which when extracted has economic value.” Basically it states that for a substance or feature to be classified as a natural resource, it must offer potential or actual economic value, creating wealth. Definition of Natural Resources : Other Websites Natural resource is any naturally occurring substance or feature of the environment (physical or biological) that, while not created by human effort, can be exploited by humans to satisfy their needs or wants. Many of such resources are our life line such as water, air and solar radiation, which are essential elements for the existence of all the flora and fauna. Two basic conditions for a substance or feature to be classified as a natural resource: First, the resource must exist naturally in the environment; that is, not synthetically produced by human beings, such as in a laboratory or factory. Second, the resource must be able to be exploited by humans to directly satisfy a need or want. Natural resources may either be: a) Biotic resources which are derived from biosphere such as the forests, marine organism, animals, birds and their products including mineral fuels come in this category, or b) Abiotic which includes water, air, land and elemental ores such as gold, silver, copper, iron etc. It may also be either be renewable and non-renewable resources. A renewable resource grows again or comes back again after we use it. For example, sunlight, water, and trees are renewable resources. A non-renewable resource is a resource that does not grow or come back, or a resource that would take a very long time to come back. For example, coal is a non-renewable resource. Regalian Doctrine Art XII, Sec. 2 of the 1987 Constitution All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State. With the exception of agricultural lands, all other natural resources shall not be alienated. The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State. The State may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens. Such agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and under such terms and conditions as may be provided by law. In cases of water rights for irrigation, water supply fisheries, or industrial uses other than the development of water power, beneficial use may be the measure and limit of the grant.

The State shall protect the nation's marine wealth in its archipelagic waters, territorial sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens. The Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens, as well as cooperative fish farming, with priority to subsistence fishermen and fishworkers in rivers, lakes, bays, and lagoons. The President may enter into agreements with foreign-owned corporations involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils according to the general terms and conditions provided by law, based on real contributions to the economic growth and general welfare of the country. In such agreements, the State shall promote the development and use of local scientific and technical resources. The Concept of Jure Regalia (Regalian Doctrine) This principle means that all natural wealth - agricultural, forest or timber, and mineral lands of the public domain and all other natural resources belong to the State. Thus, even if the private person owns the property where minerals are discovered, his ownership for such does not give him the right to extract or utilize said minerals without permission from the state to which such minerals belong. The abovementioned provision provides that except for agricultural lands for public domain which alone may be alienated, forest or timber, and mineral lands, as well as all other natural resources must remain with the State, the exploration, development and utilization of which shall be subject to its full control and supervision albeit allowing it to enter into coproduction, joint venture or production-sharing agreements, or into agreements with foreign-owned corporations involving technical or financial assistance for large-scale exploration, development, and utilization Cases 1.

Cruz vs. Secretary of Environment and Natural Resource (2000)

Facts: •

Petitioners Isagani Cruz and Cesar Europa filed a case for prohibition and mandamus as citizen and taxpayers, assailing the constitutionality of certain provisions of the Indigenous Peoples Rights Act (IPRA) and its implementing Rules on ground that they amount to an unlawful deprivation of the State’s ownership over lands of public domain and minerals and other natural resources, in violation of the Regalian doctrine. o They likewise contend that providing an allencompassing definition of “ancestral domain” and “ancestral lands” which might even include private lands within the areas violate the rights of private land owners. o Petitioners likewise contend that provisions of the IPRA defining the jurisdiction and powers of the NCIP violate due process of law. o Lastly, petitioners assail the validity of NCIP Administrative Order No. 1 which provides that the administrative relationship of the NCIP to the Office of the President (OP) as lateral and autonomous relationship for purposes of policy coordination, thereby

infringing upon the President’s power of control over the executive department. •

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to perfect their titles to public lands. It also provided for the issuance of patents to certain native settlers upon public lands.

A groups of intervenors, including Sen. Flavier, one of the authors of the IPRA and members of 112 groups of indigenous peoples prayed for the dismissal of the petition. The Commission of Human Rights likewise asserts that IPRA is an expression of the principle of parens patriae and that the State has the responsibility to protect the rights of the indigenous peoples.

Act No. 926 was superseded by the Act 2874, the second Public Land Act, passed under the Jones Law. it limited the exploitation of agricultural lands to Filipinos and Americans and citizens of other countries which gave the Filipinos the same privileges. It was amended by Commonwealth Act No. 141which remains the present Public Land Law.

Decision: The votes of the Court are split where 7 voted to dismiss the petition and 7 voted to grant. As the votes were equally divided and the necessary majority was not obtained, the petition was dismissed.

Grants of public land were brought under the operation of the Torrens System under Act 496 which placed all public and private lands in the Philippines under the Torrens system, requiring that the government issue an official certificate of title attesting to the fact that the person named is the owner of the property described.

SEPARATE OPINION (Justice Puno)

I.

D.

The Development of the Regalian Doctrine in the Philippine Legal System

A.

The Regalian Doctrine was enshrined in the 1935, 1973 and 1987 Constitutions which basically states that all lands of the public domain as well as natural resources, whether on public or private land, belong to the State. It is this concept of state ownership that petitioners claim is being violated by the IPRA.

The Laws of Indies The “Regalian Doctrine” or jura regalia is a Western legal concept first introduced by the Spaniards through the Laws of Indies and the Royal Cedulas. All lands became the exclusive dominion of the Spanish Crown, and the Spanish Government took charge of distributing the lands by issuing royal grants and concessions to Spaniards. Private land titles can only be acquired from the government by purchase or other land grant from the Crown.

II.

A. Valentin vs. Murciano This case answered the question of which is the better basis for ownership of land: long-time occupation or paper title. In this case, plaintiffs entered into peaceful occupation of the subject land while defendants ourchased the land in 1892. The Court ruled that from 1860 to 1892 there was no law in force in the Philippines by which plaintiffs could obtain ownership by prescription, without any action of the State, otherwise the same shall remain the property of the State. Thus, it required settlers on public lands to obtain titles deeds from the State.

C.

Public Land Acts and the Torrens System Act No. 926, the first Public Land Act, was passed in pursuance with the Philippine Bill of 1902, governing the disposition of land of public domain. It prescribe rules for the homesteading, selling and leasing of portions of the public domain, and to enable persons

The Indigenous Peoples Rights Act The IPRA recognizes the existence of the indigenous cultural communities or indigenous peoples as a distinct sector. It grants these people the ownership and possession of their ancestral domains and ancestral lands, and defines the extent of these lands and domains. Within their ancestral domains and lands the ICCs/IPs are given the right to self-governance and right to preserve their culture. To carry out the policies of the ACT, the law created the National Commission on Indigenous Peoples (NCIP)

The Law of Indies was followed by the Mortgage Law of 1893 which provided for the systematic registration of titles and deeds. The Maura Law of 1894 was the last Spanish law promulgated in the Philippines, which required the registration of all agricultural lands; otherwise the lands shall revert to the state.

B.

The Philippine Constitutions

Indigenous Peoples Indigenous Cultural Communities or Indigenous Peoples (ICCs/ IPs) refer to a group of people who have continuously lived as an organized community on communally bounded and defined territory. These groups of peoples have actually occupied, possessed and utilized their territories under claim of ownership since time immemorial. Their unit of government is the barangay. In a baranganic society, the chiefs administered the lands in the name of the barangay, there was no private property in land. When Islam was introduced in the country in the archipelago of Maguindanao, the Sultanate of Sulu claimed jurisdiction over territorial areas. When Spaniards settled in the Philippines, Spanish missionaries were ordered to establish pueblos where church would be constructed. All the new Christian converts were required to construct their house around the church. All lands lost by the old barangays in the process of pueblo organization and all lands not assigned to the pueblos were declared to be lands of the Crown., and the natives were stripped of their ancestral rights to the lands.

The American government classified the Filipinos into two: Christian Filipinos and non-Christian Filipinos, not to religious belief, but to geographical area, the latter referring to natives of the Philippines of a low grade of civilization, usually living in tribal relationship. The Americans pursued a policy of assimilation. They passed Act No. 253 creating the bureau of Non-Christian Tribes to determine the most practicable means for bring about their advancement. The 1935 Constitution did not carry any policy on the non-Christian Filipinos. It was in the 1973 Constitution that the State recognized the customs and interest of national cultural communities in the formulation of state policies. In 1974, President Marcos promulgated PD 410 or the Ancestral Lands Decree, providing for the issuance of land occupancy certificates to members of the national cultural communities. The Aquino government shifted from the policy of integration to one of preservation. She created the Office of Muslim Affairs, Office of Northern Cultural Communities and the Office for Southern Cultural Communities all under the OP. The 1987 Constitution expressly guaranteed the rights of tribal Filipinos to their ancestral domain and ancestral lands.

III. A.

THE PROVISIONS OF THE IPRA DO NOT CONTRAVENE THE CONSTITUTION

Ancestral Domains and Ancestral Lands are the Private Property of the Indigenous Peoples and do not constitute Part of the Land of Public Domain Ancestral domains are all areas belonging to ICCs/IPs held under a claim of ownership, occupied or possessed by ICCs/IPs since time immemorial, continuously until the present except when interrupted by war or force majeure. It comprises of lands, inland waters, coastal areas, and natural resources therein and includes ancestral lands, forests, pastures, hunting grounds, burial grounds, and bodies of water, mineral and other natural resources.

averred that a grant should be given to him by reason of immemorial use and occupation. The US SC ruled in favor of Carino and ordered the registration of the subject lands in his name. The court laid down the presumption of a certain title held as far back as memory went and under a claim of private ownership. Land held by this title is presumed to never have been public land. The registration requirement was not to “confer title, but simply to establish it”. In a nutshell, Cariño enunciated the legal presumption that ancestral lands and domains were not part of the public domain, having maintained their character as private lands of the indigenous peoples since time immemorial Why Carino doctrine is unique? Carino is the only case that specifically recognizes native title. Carino was cited by succeeding cases to support the concept of acquisitive prescription under the Public Land Act

Other Separate Opinions: Justice Kapunan Regalian theory doesn’t negate the native title to lands held in private ownership since time immemorial, adverting to the landmark case of CARINO V. LOCAL GOVERNMENT, where the US SC through Holmes held: “xxx the land has been held by individuals under a claim of private ownership, it will be presumed to have been held in the same way from before the Spanish conquest, and never to have been public land.” Existence of native titie to land, or ownership of land by Filipinos by virtue of possession under a claim of ownership since time immemorial and independent of any grant from the Spanish crown as an exception to the theory of jure regalia Justice Puno: Carino case firmly established a concept of private land title that existed irrespective of any royal grant from the State and was based on the strong mandate extended to the Islands via the Philippine Bill of 1902. The IPRA recognizes the existence of ICCs/IPs as a distinct sector in the society. It grants this people the ownership and possession of their ancestral domains and ancestral lands and defines the extent of these lands and domains 2. Facts: •

Ancestral lands are lands held by the ICCs/ IPs under the same conditions as ancestral domains except that these are limited to lands, not merely occupied and possessed but are also utilized, including residential lots, rice terraces, or paddies, private forests.

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The delineation of ancestral domains and lands is conferred on the NCIP who shall issue a Certificate of Ancestral Domain (CADT) upon finding that the application is meritorious, in the name of the community. Ancestral Lands outside the ancestral domain, the NCIP issues a Certificate of Land Title (CALT). The CALTs and CADTs shall be registered in the Register of Deeds in the place where property is situated.

B.

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Carino vs. Insular Government

On June 23, 1903, Mateo Cariňo went to the Court of Land Registration to petition his inscription as the owner of a 146 hectare land he’s been possessing in the then municipality of Baguio. Mateo only presented possessory information and no other documentation. The State opposed the petition averring that the land is part of the US military reservation. The CLR ruled in favor of Mateo. The State appealed. Mateo lost. Mateo

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Chavez vs. Public Estates Authority (2002)1 The Phil gov’t (through the Commissioner of Public Highways) signed a contract with the CDCP (Construction and Development Corporation of the Philippines) to reclaim certain foreshore and offshore areas of Manila Bay and for the construction of the Manila-Cavite Coastal Road. Pres. Marcos issued P.D. 1084 creating PEA (Public Estates Authority) and transferred to it the ‘lands’ reclaimed in Manila Bay for the Manila-Cavite Road and Reclamation Project (MCCRRP). Thereafter, Pres. Aquino issued Special Patent No. 3517, granting and transferring to PEA “the parcels of land so reclaimed under the MCCRRP”. A TCT was also issued in the name of PEA covering 3 reclaimed islands known as the "Freedom Islands" (157.84 hectares) located at the southern portion of the Manila-Cavite Coastal Road, Parañaque City, which were part of these lands acquired by PEA. PEA entered into a Joint Venture Agreement (JVA) with AMARI (AMARI Coastal Bay and Development Corporation), a private corporation, to develop the Freedom Islands. o However, the JVA also required the reclamation of an additional 250 hectares of

Two subsequent motions for reconsideration was filed and were denied.

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submerged areas surrounding these islands to complete the configuration in the Master Development Plan of the Southern Reclamation Project-MCCRRP. o PEA and AMARI entered into the JVA through negotiation without public bidding. On June 8, 1995, then President Fidel V. Ramos, through then Executive Secretary Ruben Torres, approved the JVA. On November 29, 1996, then Senate President Maceda delivered a privilege speech denouncing the JVA as the "grandmother of all scams." Thus the Senate Committees investigated on the matter and concluded (1) the reclaimed lands PEA seeks to transfer to AMARI under the JVA are lands of the public domain which the government has not classified as alienable lands and therefore PEA cannot alienate these lands; (2) the certificates of title covering the Freedom Islands are thus void, and (3) the JVA itself is illegal. Petitioner Frank Chavez, as a taxpayer, filed the instant Petition for Mandamus with Prayer for Issuance of a Writ of Preliminary Injunction and TRO. March 30, 1999, PEA and AMARI signed an Amended Joint Agreement, which was approved by Pres. Estrada.

certificates of title in the name of PEA, are alienable lands of the public domain. PEA may lease these lands to private corporations but may not sell or transfer ownership of these lands to private corporations. PEA may only sell these lands to Philippine citizens, subject to the ownership limitations in the 1987 Constitution and existing laws. 2. The 592.15 hectares of submerged areas of Manila Bay remain inalienable natural resources of the public domain until classified as alienable or disposable lands open to disposition and declared no longer needed for public service. The government can make such classification and declaration only after PEA has reclaimed these submerged areas. Only then can these lands qualify as agricultural lands of the public domain, which are the only natural resources the government can alienate. In their present state, the 592.15 hectares of submerged areas are inalienable and outside the commerce of man. 3. Since the Amended JVA seeks to transfer to AMARI, a private corporation, ownership of 77.34 hectares of the Freedom Islands, such transfer is void for being contrary to Section 3, Article XII of the 1987 Constitution which prohibits private corporations from acquiring any kind of alienable land of the public domain.

Note: The Amended Joint Venture Agreement: The subject matter of the Amended JVA, as stated in its second Whereas clause, consists of three properties, namely:

4. Since the Amended JVA also seeks to transfer to AMARI ownership of 290.156 hectares of still submerged areas of Manila Bay, such transfer is void for being contrary to Section 2, Article XII of the 1987 Constitution which prohibits the alienation of natural resources other than agricultural lands of the public domain. PEA may reclaim these submerged areas. Thereafter, the government can classify the reclaimed lands as alienable or disposable, and further declare them no longer needed for public service. Still, the transfer of such reclaimed alienable lands of the public domain to AMARI will be void in view of Section 3, Article XII of the 1987 Constitution which prohibits private corporations from acquiring any kind of alienable land of the public domain.

1. "[T]hree partially reclaimed and substantially eroded islands along Emilio Aguinaldo Boulevard in Paranaque and Las Pinas, Metro Manila, with a combined titled area of 1,578,441 square meters;" 2. "[A]nother area of 2,421,559 square meters contiguous to the three islands;" and 3. "[A]t AMARI's option as approved by PEA, an additional 350 hectares more or less to regularize the configuration of the reclaimed area." PEA confirms that the Amended JVA involves "the development of the Freedom Islands and further reclamation of about 250 hectares x x x," plus an option "granted to AMARI to subsequently reclaim another 350 hectares x x x." In short, the Amended JVA covers a reclamation area of 750 hectares. Only 157.84 hectares of the 750-hectare reclamation project have been reclaimed, and the rest of the 592.15 hectares are still submerged areas forming part of Manila Bay. Indisputably, under the Amended JVA, AMARI will acquire and own a maximum of 367.5 hectares of reclaimed land which will be titled in its name.

Clearly, the Amended JVA violates glaringly Sections 2 and 3, Article XII of the 1987 Constitution. Under Article 1409 of the Civil Code, contracts whose "object or purpose is contrary to law," or whose "object is outside the commerce of men," are "inexistent and void from the beginning." The Court must perform its duty to defend and uphold the Constitution, and therefore declares the Amended JVA null and void ab initio.

3. Facts: •

Issue: Whether the stipulations in the Amended Joint Venture Agreement or the transfer to AMARI of certain lands reclaimed and still to be reclaimed violate the 1987 Constitution. Decision: The SC summarized the conclusions as follows: 1. The 157.84 hectares of reclaimed lands comprising the Freedom Islands, now covered by

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Chavez vs. National Housing Authority (2007) On August 5, 2004, former Solicitor General Francisco Chavez, filed an instant petition raising constitutional issues on the JVA entered by National Housing Authority and R-II Builders, Inc. On March 1, 1988, then-President Cory Aquino issued Memorandum order No. (MO) 161 approving and directing implementation of the Comprehensive and Integrated Metropolitan Manila Waste Management Plan. o During this time, Smokey Mountain, a wasteland in Tondo, Manila, are being made residence of many Filipinos living in a subhuman state.

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As presented in MO 161, NHA prepared feasibility studies to turn the dumpsite into low-cost housing project, thus, Smokey Mountain Development and Reclamation Project (SMDRP), came into place. RA 6957 (Build-Operate-Transfer Law) was passed on July 1990 declaring the importance of private sectors as contractors in government projects. Thereafter, Aquino proclaimed MO 415 applying RA 6957 to SMDRP, among others. o The same MO also established EXECOM and TECHCOM in the execution and evaluation of the plan, respectively, to be assisted by the Public Estates Authority (PEA). Notices of public bidding to become NHA’s venture partner for SMDRP were published in newspapers in 1992, from which R-II Builders, Inc. (RBI) won the bidding process. o Then-President Ramos authorized NHA to enter into a Joint Venture Agreement with RBI. Under the JVA, the project involves the clearing of Smokey Mountain for eventual development into a low cost housing complex and industrial/commercial site. o RBI is expected to fully finance the development of Smokey Mountain and reclaim 40 hectares of the land at the Manila Bay Area. o The latter together with the commercial area to be built on Smokey Mountain will be owned by RBI as enabling components. If the project is revoked or terminated by the Government through no fault of RBI or by mutual agreement, the Government shall compensate RBI for its actual expenses incurred in the Project plus a reasonable rate of return not exceeding that stated in the feasibility study and in the contract as of the date of such revocation, cancellation, or termination on a schedule to be agreed upon by both parties. To summarize, the SMDRP shall consist of Phase I and Phase II. o Phase I of the project involves clearing, levelling-off the dumpsite, and construction of temporary housing units for the current residents on the cleared and levelled site. o Phase II involves the construction of a fenced incineration area for the on-site disposal of the garbage at the dumpsite. Due to the recommendations done by the DENR after evaluations done, the JVA was amended and restated (now ARJVA) to accommodate the design changes and additional work to be done to successfully implement the project. o The original 3,500 units of temporary housing were decreased to 2,992. The reclaimed land as enabling component was increased from 40 hectares to 79 hectares, which was supported by the issuance of Proclamation No. 465 by President Ramos. The revision also provided for the 119hectare land as an enabling component for Phase II of the project. Subsequently, the Clean Air Act was passed by the legislature which made the establishment of an incinerator illegal, making the off-site dumpsite at Smokey Mountain necessary. On August 1, 1998, the project was suspended, to be later reconstituted by President Estrada in MO No. 33. On August 27, 2003, the NHA and RBI executed a Memorandum of Agreement whereby both parties agreed to terminate the JVA and subsequent agreements.

o

During this time, NHA reported that 34 temporary housing structures and 21 permanent housing structures had been turned over by RBI.

Issues: 1. Whether respondents NHA and RBI have been granted the power and authority to reclaim lands of the public domain as this power is vested exclusively in PEA as claimed by petitioner 2. Whether respondents NHA and RBI were given the power and authority by DENR to reclaim foreshore and submerged lands 3.

Whether respondent RBI can acquire reclaimed foreshore and submerged lands considered as alienable and outside the commerce of man

4.

Whether respondent RBI can acquire reclaimed lands when there was no declaration that said lands are no longer needed for public use

5.

Whether there is a law authorizing sale of reclaimed lands

6.

Whether the transfer of reclaimed lands to RBI was done by public bidding

7.

Whether RBI, being a private corporation, is barred by the Constitution to acquire lands of public domain

8.

Whether respondents can be compelled to disclose all information related to the SMDRP

9.

Whether the operative fact doctrine applies to the instant position

Decision: 1.

Executive Order 525 reads that the PEA shall be primarily responsible for integrating, directing, and coordinating all reclamation projects for and on behalf of the National Government. This does not mean that it shall be responsible for all. The requisites for a valid and legal reclamation project are approval by the President (which were provided for by MOs), favourable recommendation of PEA (which were seen as a part of its recommendations to the EXECOM), and undertaken either by PEA or entity under contract of PEA or by the National Government Agency (NHA is a government agency whose authority to reclaim lands under consultation with PEA is derived under PD 727 and RA 7279).

2.

Notwithstanding the need for DENR permission, the DENR is deemed to have granted the authority to reclaim in the Smokey Mountain Project for the DENR is one of the members of the EXECOM which provides reviews for the project. ECCs and Special Patent Orders were given by the DENR which are exercises of its power of supervision over the project. Furthermore, it was the President via the abovementioned MOs that originally authorized the reclamation. It must be noted that the reclamation of lands of public domain is reposed first in the Philippine President.

3.

The reclaimed lands were classified alienable and disposable via MO 415 issued by President Aquino and Proclamation Nos. 39 and 465 by President Ramos.

4.

Despite not having an explicit declaration, the lands have been deemed to be no longer needed for public use as stated in Proclamation No. 39 that these are to be “disposed to qualified beneficiaries.”

Furthermore, these lands have already been necessarily reclassified as alienable and disposable lands under the BOT law. 5.

Letter I of Sec. 6 of PD 757 clearly states that the NHA can acquire property rights and interests and encumber or otherwise dispose of them as it may deem appropriate.

6.

There is no doubt that respondent NHA conducted a public bidding of the right to become its joint venture partner in the Smokey Mountain Project. It was noted that notices were published in national newspapers. The bidding proper was done by the Bids and Awards Committee on May 18, 1992.

7.

RA 6957 as amended by RA 7718 explicitly states that a contractor can be paid “a portion as percentage of the reclaimed land” subject to the constitutional requirement that only Filipino citizens or corporation with at least 60% Filipino equity can acquire the same. In addition, when the lands were transferred to the NHA, these were considered Patrimonial lands of the state, by which it has the power to sell the same to any qualified person.

8.

This relief must be granted. It is the right of the Filipino people to information on matters of public concerned as stated in Article II, Sec. 28, and Article III, Sec. 7 of the 1987 Constitution.

9.

When the petitioner filed the case, the JVA had already been terminated by virtue of MOA between RBI and NHA. The properties and rights in question after the passage of around 10 years from the start of the project’s implementation cannot be disturbed or questioned. The petitioner, being the Solicitor General at the time SMDRP was formulated, had ample opportunity to question the said project, but did not do so. The moment to challenge has passed.

4. Facts: •

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Republic of the Naguiat (2006)

Philippines

vs.

Celestina

Celestina Naguiat applied for registration of title to 4 parcels of land (located in Botolan, Zambales) with RTC Zambales. o She claimed to have acquired it from LID Corporation, who in turn had acquired it from Calderon, Moraga and Monje and their predecessors-in-interest who have been in possession for more than 30 years. Republic of the Philippines (through the OSG) filed an opposition to the application. o They claim that neither Naguiat nor her predecessors-in-interest have been in possession since 12 June 1945, that the muniments of title and tax payment receipts aren’t sufficient evidence of a bona fide acquisition of the lands, that Naguiat’s Spanish title can no longer be availed of and finally, that said lands are part of the public domain and not subject of private appropriation. RTC rendered a decision in favour of Naguiat and decreed the registration of said lands in her name. Petitioner Republic of the Phils brought case to the CA. CA affirmed RTC decision.

Whether or not the areas in question have ceased to have the status of forest or other inalienable lands of the public domain.

Decision: No. Naguiat was unable to provide sufficient evidence that such parcels of land are no longer a part of the public domain. Public forest lands or forest reserves, unless declassified and released by positive act of the Government so that they may form part of the disposable agricultural lands of the public domain, are not capable of private appropriation. As to these assets, the rules on confirmation of imperfect title do not apply. Forests, in the context of both the Public Land Act and the Constitution classifying lands of the public domain into "agricultural, forest or timber, mineral lands and national parks," do not necessarily refer to a large tract of wooded land or an expanse covered by dense growth of trees and underbrush. As we stated in Heirs of Amunategui: “A forested area classified as forest land of the public domain does not lose such classification simply because loggers or settlers have stripped it of its forest cover. Parcels of land classified as forest land may actually be covered with grass or planted to crops by kaingin cultivators or other farmers. "Forest lands" do not have to be on mountains or in out of the way places. xxx. The classification is merely descriptive of its legal nature or status and does not have to be descriptive of what the land actually looks like. xxx” Under Section 2, Article XII of the Constitution, which embodies the Regalian doctrine, all lands of the public domain belong to the State – the source of any asserted right to ownership of land. All lands not appearing to be clearly of private dominion presumptively belong to the State. Accordingly, public lands not shown to have been reclassified or released as alienable agricultural land or alienated to a private person by the State remain part of the inalienable public domain. Under Section 6 of the Public Land Act, the prerogative of classifying or reclassifying lands of the public domain, i.e., from forest or mineral to agricultural and vice versa, belongs to the Executive Branch of the government and not the court. Needless to stress, the onus to overturn, by incontrovertible evidence, the presumption that the land subject of an application for registration is alienable or disposable rests with the applicant. In the case at bar, the CA only granted the petition because it assumed that the lands in question are already alienable and disposable, which is found by the SC to not be in this case. Here, respondent never presented the required certification from the proper government agency or official proclamation reclassifying the land applied for as alienable and disposable. Matters of land classification or reclassification cannot be assumed. It calls for proof. Aside from tax receipts, respondent submitted in evidence the survey map and technical descriptions of the lands, which, needless to state, provided no information respecting the classification of the property. These documents are not sufficient to overcome the presumption that the land sought to be registered forms part of the public domain. Therefore, the issue of whether or not Naguiat and her predecessor-in-interest have been in open, exclusive and continuous possession of the parcels of land in question is now of little moment. For, unclassified land, as here, cannot be acquired by adverse occupation or possession; occupation thereof in the concept of owner, however long, cannot ripen into private ownership and be registered as title.

Sustainable Development Sustainable Development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland Report). It is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come. It contains within it two key concepts:

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the concept of 'needs', in particular the essential needs of the world's poor, to which overriding priority should be given; and

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the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs

The Brundtland Report’s targets were multilateralism and interdependence of nations in the search for a sustainable development path. The report sought to recapture the spirit of the United Nations Conference on the Human Environment the Stockholm Conference - which had introduced environmental concerns to the formal political development sphere. Our Common Future placed environmental issues firmly on the political agenda; it aimed to discuss the environment and development as one single issue. The publication of Our Common Future and the work of the World Commission on Environment and Development laid the groundwork for the convening of the 1992 Earth Summit and the adoption of Agenda 21, the Rio Declaration and to the establishment of the Commission on Sustainable Development. In addition, key contributions of Our Common Future to the concept of sustainable development include the recognition that the many crises facing the planet are interlocking crises that are elements of a single crisis of the whole and of the vital need for the active participation of all sectors of society in consultation and decisions relating to sustainable development. Sustainable development ensures the well-being of the human person by integrating social development, economic development, and environmental conservation and protection. It refers to the "interdependent and mutually reinforcing pillars of sustainable development as economic development, social development, and environmental protection. As the goal of sustainable development is to permanently improve the living conditions of human beings, social and economic developments must be carried out in a way that is environmentally and ecologically sound; ensuring the continual rejuvenation and availability of natural resources for future generations. Seven Dimensions of Sustainable Development : From the Philippine Agenda 21 From the Philippine perspective sustainable development is a multidimensional concept, involving no less than seven dimensions. Sustainable development is viewed as the mutually beneficial interaction between the legitimate interests of business and the economy, government and the polity, and civil society and culture. From this perspective, five dimensions of sustainable development are clearly visible. These are—the human being, culture, polity, economy, and Nature.

Article II, Sec. 16 of 1987 Constitution

The State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature. Does Sec. 16 provide for enforceable rights? Yes. The provision, as worded, recognizes an enforceable “right”. Hence, appeal to it has been recognized as conferring “standing” on minors to challenge logging policies of the government (Oposa vs. Factoran). On this basis too, the Supreme Court upheld the empowerment of the Laguna Lake Development Authority to protect the inhabitants of the Laguna Lake Area from the deleterious effects of pollutants coming from garbage dumping and the discharge of wastes in the area as against the local autonomy claim of local governments in the area (Laguna Lake Development Authority vs. CA) While the right to a balanced and healthful ecology is to be found under the Declaration of Principles and State Policies and not under the Bill of Rights, it does not follow that it is less important than any of the civil and political rights enumerated in the latter. As a matter of fact, these basic rights need not even be written in the Constitution for they are assumed to exist from the inception of humankind. The right to a balanced and healthful ecology carries with it the correlative duty to refrain from impairing the environment. Section 16 is unusual among those found in Article II in that, whereas almost all the other provisions in the Article are not self-executing but need implementing legislation to make them effective, Section 16 has been recognized by the Supreme Court as self-executing like the provisions in the Bill of Rights.

AGENDA 21 Commission [formally the World Commission Environment and Development (WCED)]:

on

It was known by the name of its Chair Gro Harlem Brundtland (former Norwegian Prime Minister), and was convened by the United Nations in 1983. The commission was created to address growing concern "about the accelerating deterioration of the human environment and natural resources and the consequences of that deterioration for economic and social development." In establishing the commission, the UN General Assembly recognized that environmental problems were global in nature and determined that it was in the common interest of all nations to establish policies for sustainable development. Agenda 21: an action plan of the United Nations (UN) related to sustainable development and was an outcome of the United Nations Conference on Environment and Development (UNCED) held in Rio de Janeiro, Brazil, in 1992. It is a comprehensive blueprint of action to be taken globally, nationally and locally by organizations of the UN, governments, and major groups in every area in which humans directly affect the environment. Development of Agenda 21: The full text of Agenda 21 was revealed at the United Nations Conference on Environment and Development (Earth Summit), held in Rio de Janeiro on June 13, 1992, where 178 governments voted to adopt the program. The final text was the result of drafting, consultation and negotiation, beginning in 1989 and culminating at the two-week conference. The number 21 refers to an agenda for the 21st century. It may also refer to the number on the UN's agenda at this particular summit. Rio+5: In 1997, the General Assembly of the UN held a special session to appraise five years of progress on the implementation of Agenda 21 (Rio +5). The Assembly

recognized progress as 'uneven' and identified key trends including increasing globalization, widening inequalities in income and a continued deterioration of the global environment. A new General Assembly Resolution (S-19/2) promised further action. The Johannesburg Summit: The Johannesburg Plan of Implementation, agreed at the World Summit on Sustainable Development (Earth Summit 2002) affirmed UN commitment to 'full implementation' of Agenda 21, alongside achievement of the Millennium Development Goals and other international agreements. Implementation: The Commission on Sustainable Development acts as a high level forum on sustainable development and has acted as preparatory committee for summits and sessions on the implementation of Agenda 21. The United Nations Division for Sustainable Development acts as the secretariat to the Commission and works 'within the context of' Agenda 21. Implementation by member states remains essentially voluntary. Structure and Contents: There are 40 chapters in the Agenda 21, divided into four main sections. 1. Section I: Social and Economic Dimensions which deals with combating poverty, changing consumption patterns, promoting health, change population and sustainable settlement. 2. Section II: Conservation and Management of Resources for Development Includes atmospheric protection, combating deforestation, protecting fragile environments, conservation of biological diversity (biodiversity), and control of pollution.

3. 4.

Section III: Strengthening the Role of Major Groups - Includes the roles of children and youth, women, NGOs, local authorities, business and workers. Section IV: Means of Implementation Implementation includes science, technology transfer, education, international institutions and financial mechanisms.

Local Agenda 21: The implementation of Agenda 21 was intended to involve action at international, national, regional and local levels. Some national and state governments have legislated or advised that local authorities take steps to implement the plan locally, as recommended in Chapter 28 of the document. Such programmes are often known as 'Local Agenda 21' or 'LA21'. Agenda 21 for culture: During the first World Public Meeting on Culture, held in Porto Alegre in 2002, it came up the idea to draw up a document guidelines for local cultural policies, a document comparable to what the Agenda 21 meant in 1992 for the environment. The Agenda 21 for culture is the first document with worldwide mission that advocates establishing the groundwork of an undertaking by cities and local governments for cultural development.

maintaining the quality of the natural environment for current and future generations. Towards this end, the State adopts the principle of protecting the climate system for the benefit of humankind, on the basis of climate justice or common but differentiated responsibilities and the Precautionary Principle to guide decision-making in climate risk management. As a party to the United Nations Framework Convention on Climate Change, the State adopts the ultimate objective of the Convention which is the stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system which should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner.1awphil As a party to the Hyogo Framework for Action, the State likewise adopts the strategic goals in order to build national and local resilience to climate change-related disasters. Recognizing the vulnerability of the Philippine archipelago and its local communities, particularly the poor, women, and children, to potential dangerous consequences of climate change such as rising seas, changing landscapes, increasing frequency and/or severity of droughts, fires, floods and storms, climate-related illnesses and diseases, damage to ecosystems, biodiversity loss that affect the country’s environment, culture, and economy, the State shall cooperate with the global community in the resolution of climate change issues, including disaster risk reduction. It shall be the policy of the State to enjoin the participation of national and local governments, businesses, nongovernment organizations, local communities and the public to prevent and reduce the adverse impacts of climate change and, at the same time, maximize the benefits of climate change. It shall also be the policy of the State to incorporate a gender-sensitive, prochildren and pro-poor perspective in all climate change and renewable energy efforts, plans and programs. In view thereof, the State shall strengthen, integrate, consolidate and institutionalize government initiatives to achieve coordination in the implementation of plans and programs to address climate change in the context of sustainable development. Further recognizing that climate change and disaster risk reduction are closely interrelated and effective disaster risk reduction will enhance climate change adaptive capacity, the State shall integrate disaster risk reduction into climate change programs and initiatives. Cognizant of the need to ensure that national and subnational government policies, plans, programs and projects are founded upon sound environmental considerations and the principle of sustainable development, it is hereby declared the policy of the State to systematically integrate the concept of climate change in various phases of policy formulation, development plans, poverty reduction strategies and other development tools and techniques by all agencies and instrumentalities of the government. Section 3. Definition of Terms. – For purposes of this Act, the following shall have the corresponding meanings:

REPUBLIC ACT NO. 9729: CLIMATE CHANGE ACT OF 2009 Section 2. Declaration of Policy. – It is the policy of the State to afford full protection and the advancement of the right of the people to a healthful ecology in accord with the rhythm and harmony of nature. In this light, the State has adopted the Philippine Agenda 21 framework which espouses sustainable development, to fulfill human needs while

(a) “Adaptation” refers to the adjustment in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities. (b) “Adaptive capacity” refers to the ability of ecological, social or economic systems to adjust to climate change including climate variability and extremes, to moderate or offset potential damages

and to take advantage of associated opportunities with changes in climate or to cope with the consequences thereof. (c) “Anthropogenic causes” refer to causes resulting from human activities or produced by human beings. (d) “Climate Change” refers to a change in climate that can be identified by changes in the mean and/or variability of its properties and that persists for an extended period typically decades or longer, whether due to natural variability or as a result of human activity. (e) “Climate Variability” refers to the variations in the average state and in other statistics of the climate on all temporal and spatial scales beyond that of individual weather events. (f) “Climate Risk” refers to the product of climate and related hazards working over the vulnerability of human and natural ecosystems. (g) “Disaster” refers to a serious disruption of the functioning of a community or a society involving widespread human, material, economic or environmental losses and impacts which exceed the ability of the affected community or society to cope using its own resources. (h) “Disaster risk reduction” refers to the concept and practice of reducing disaster risks through systematic efforts to analyze and manage the causal factors of disasters, including through reduced exposure to hazards, lessened vulnerability of people and property, wise management of land and the environment, and improved preparedness for adverse events. (i) “Gender mainstreaming” refers to the strategy for making women’s as well as men’s concerns and experiences an integral dimension of the design, implementation, monitoring, and evaluation of policies and programs in all political, economic, and societal spheres so that women and men benefit equally and inequality is not perpetuated. It is the process of assessing the implications for women and men of any planned action, including legislation, policies, or programs in all areas and at all levels. (j) “Global Warming” refers to the increase in the average temperature of the Earth’s near-surface air and oceans that is associated with the increased concentration of greenhouse gases in the atmosphere. (k) “Greenhouse effect” refers to the process by which the absorption of infrared radiation by the atmosphere warms the Earth. (l) “Greenhouse gases (GHG)” refers to constituents of the atmosphere that contribute to the greenhouse effect including, but not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride. (m) “Mainstreaming” refers to the integration of policies and measures that address climate change

into development planning and sectoral decisionmaking. (n) “Mitigation” in the context of climate change, refers to human intervention to address anthropogenic emissions by sources and removals by sinks of all GHG, including ozone- depleting substances and their substitutes. (o) “Mitigation potential” shall refer to the scale of GHG reductions that could be made, relative to emission baselines, for a given level of carbon price (expressed in cost per unit of carbon dioxide equivalent emissions avoided or reduced). (p) “Sea level rise” refers to an increase in sea level which may be influenced by factors like global warming through expansion of sea water as the oceans warm and melting of ice over land and local factors such as land subsidence. (q) “Vulnerability” refers to the degree to which a system is susceptible to, or unable to cope with, adverse effects of climate change, including climate variability and extremes. Vulnerability is a function of the character, magnitude, and rate of climate change and variation to which a system is exposed, its sensitivity, and its adaptive capacity. Section 4. Creation of the Climate Change Commission. – There is hereby established a Climate Change Commission, hereinafter referred to as the Commission. The Commission shall be an independent and autonomous body and shall have the same status as that of a national government agency. It shall be attached to the Office of the President. The Commission shall be the sole policy-making body of the government which shall be tasked to coordinate, monitor and evaluate the programs and action plans of the government relating to climate change pursuant to the provisions of this Act. The Commission shall be organized within sixty (60) days from the effectivity of this Act. Section 5. Composition of the Commission. – The Commission shall be composed of the President of the Republic of the Philippines who shall serve as the Chairperson, and three (3) Commissioners to be appointed by the President, one of whom shall serve as the Vice Chairperson of the Commission. The Commission shall have an advisory board composed of the following: (a) Secretary of the Department of Agriculture; (b) Secretary of the Department of Energy; (c) Secretary of the Department of Environment and Natural Resources; (d) Secretary of the Department of Education; (e) Secretary of the Department of Foreign Affairs; (f) Secretary of the Department of Health;

(g) Secretary of the Department of the Interior and Local Government; (h) Secretary of the Department of National Defense, in his capacity as Chair of the National Disaster Coordinating Council; (i) Secretary of the Department of Public Works and Highways; (j) Secretary of the Department of Science and Technology; (k) Secretary of the Department of Social Welfare and Development; (l) Secretary of the Department of Trade and Industry; (m) Secretary of the Department of Transportation and Communications; (n) Director-General of the National Economic and Development Authority, in his capacity as Chair of the Philippine Council for Sustainable Development; (o) Director-General of the National Security Council; (p) Chairperson of the National Commission on the Role of Filipino Women; (q) President of the League of Provinces; (r) President of the League of Cities; (s) President of the League of Municipalities; (t) President of the Liga ng mga Barangay;

Section 7. Qualifications, Tenure, Compensation of Commissioners. – The Commissioners must be Filipino citizens, residents of the Philippines, at least thirty (30) years of age at the time of appointment, with at least ten (10) years of experience on climate change and of proven honesty and ntegrity. The Commissioners shall be experts in climate change by virtue of their educational background, training and experience: Provided, That at least one (1) Commissioner shall be female: Provided, further, That in no case shall the Commissioners come from the same sector: Provided, finally, That in no case shall any of the Commissioners appoint representatives to act on their behalf. The Commissioners shall hold office for a period of six (6) years, and may be subjected to reappointment: Provided, That no person shall serve for more than two (2) consecutive terms: Provided, further, That in case of a vacancy, the new appointee shall fully meet the qualifications of a Commissioner and shall hold office for the unexpired portion of the term only: Provided, finally, That in no case shall a Commissioner be designated in a temporary or acting capacity. The Vice Chairperson and the Commissioners shall have the rank and privileges of a Department Secretary and Undersecretary, respectively. They shall be entitled to corresponding compensation and other emoluments and shall be subject to the same disqualifications. Section 8. Climate Change Office. – There is hereby created a Climate Change Office that shall assist the Commission. It shall be headed by a Vice Chairperson of the Commission who shall act as the Executive Director of the Office. The Commission shall have the authority to determine the number of staff and create corresponding positions necessary to facilitate the proper implementation of this Act, subject to civil service laws, rules and regulations. The officers and employees of the Commission shall be appointed by the Executive Director. Section 9. Powers and Functions of the Commission. – The Commission shall have the following powers and functions:

(v) Representative from the business sector; and

(a) Ensure the mainstreaming of climate change, in synergy with disaster risk reduction, into the national, sectoral and local development plans and programs;

(w) Representative organizations.

nongovernmental

(b) Coordinate and synchronize climate change programs of national government agencies;

At least one (1) of the sectoral representatives shall come from the disaster risk reduction community.

(c) Formulate a Framework Strategy on Climate Change to serve as the basis for a program for climate change planning, research and development, extension, and monitoring of activities on climate change;

(u) Representative from the academe;

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The representatives shall be appointed by the President from a list of nominees submitted by their respective groups. They shall serve for a term of six (6) years without reappointment unless their representation is withdrawn by the sector they represent. Appointment to any vacancy shall be only for the unexpired term of the predecessor. Only the ex officio members of the advisory board shall appoint a qualified representative who shall hold a rank of no less than an Undersecretary. Section 6. Meetings of the Commission. – The Commission shall meet once every three (3) months, or as often as may be deemed necessary by the Chairperson. The Chairperson may likewise call upon other government agencies for the proper implementation of this Act.

(d) Exercise policy coordination to ensure the attainment of goals set in the framework strategy and program on climate change; (e) Recommend legislation, policies, strategies, programs on and appropriations for climate change adaptation and mitigation and other related activities; (f) Recommend key development investments in climate- sensitive sectors such as water resources, agriculture, forestry, coastal and marine resources, health, and infrastructure to ensure the achievement of national sustainable development goals;

(g) Create an enabling environment for the design of relevant and appropriate risk-sharing and risktransfer instruments; (h) Create an enabling environment that shall promote broader multi-stakeholder participation and integrate climate change mitigation and adaptation; (i) Formulate strategies on mitigating GHG and other anthropogenic causes of climate change; (j) Coordinate and establish a close partnership with the National Disaster Coordinating Council in order to increase efficiency and effectiveness in reducing the people’s vulnerability to climate-related disasters; (k) In coordination with the Department of Foreign Affairs, represent the Philippines in the climate change negotiations; (l) Formulate and update guidelines for determining vulnerability to climate change impacts and adaptation assessments and facilitate the provision of technical assistance for their implementation and monitoring; (m) Coordinate with local government units (LGUs) and private entities to address vulnerability to climate change impacts of regions, provinces, cities and municipalities; (n) Facilitate capacity building for local adaptation planning, implementation and monitoring of climate change initiatives in vulnerable communities and areas; (o) Promote and provide technical and financial support to local research and development programs and projects in vulnerable communities and areas; and (p) Oversee the dissemination of information on climate change, local vulnerabilities and risks, relevant laws and protocols and adaptation and mitigation measures. Section 10. Panel of Technical Experts. – The Commission shall constitute a national panel of technical experts consisting of practitioners in disciplines that are related to climate change, including disaster risk reduction. The Panel shall provide technical advice to the Commission in climate science, technologies, and best practices for risk assessment and enhancement of adaptive capacity of vulnerable human settlements to potential impacts of climate change. The Commission shall set the qualifications and compensation for the technical experts. It shall provide resources for the operations and activities of the Panel. Section 11. Framework Strategy and Program on Climate Change. – The Commission shall, within six (6) months from the effectivity of this Act, formulate a Framework Strategy on Climate Change. The Framework shall serve as the basis for a program for climate change planning, research and development, extension, and monitoring of activities to protect vulnerable communities from the adverse effects of climate change.

The Framework shall be formulated based on climate change vulnerabilities, specific adaptation needs, and mitigation potential, and in accordance with the international agreements. The Framework shall be reviewed every three (3) years, or as may be deemed necessary. Section 12. Components of the Framework Strategy and Program on Climate Change. – The Framework shall include, but not limited to, the following components: (a) National priorities; (b) Impact, vulnerability and adaptation assessments; (c) Policy formulation; (d) Compliance with international commitments; (e) Research and development; (f) Database development and management; (g) Academic programs, capability building and mainstreaming; (h) Advocacy and information dissemination; (i) Monitoring and evaluation; and (j) Gender mainstreaming. Section 13. National Climate Change Action Plan. – The Commission shall formulate a National Climate Change Action Plan in accordance with the Framework within one (1) year after the formulation of the latter. The National Climate Change Action Plan shall include, but not limited to, the following components: (a) Assessment of the national impact of climate change; (b) The identification of the most vulnerable communities/areas, including ecosystems to the impacts of climate change, variability and extremes; (c) The identification of differential impacts of climate change on men, women and children; (d) The assessment and management of risk and vulnerability; (e) The identification of GHG mitigation potentials; and (f) The identification of options, prioritization of appropriate adaptation measures for joint projects of national and local governments. Section 14. Local Climate Change Action Plan. – The LGUs shall be the frontline agencies in the formulation, planning and implementation of climate change action plans in their respective areas, consistent with the provisions of the Local Government Code, the Framework, and the National Climate Change Action Plan. Barangays shall be directly involved with municipal and city governments in prioritizing climate change issues and in identifying and implementing best practices and other solutions. Municipal and city governments shall consider climate change adaptation, as one of their regular functions. Provincial governments shall provide technical assistance, enforcement and information management in support of municipal and city climate change action plans. Inter-local government unit collaboration shall be maximized in the conduct of climate- related activities. LGUs shall regularly update their respective action plans to reflect changing social, economic, and environmental conditions and emerging issues. The LGUs shall furnish the Commission with copies of their action plans and all subsequent amendments, modifications and revisions thereof, within one (1) month from their adoption. The LGUs shall mobilize and allocate necessary personnel, resources and

logistics to effectively implement their respective action plans. The local chief executive shall appoint the person responsible for the formulation and implementation of the local action plan. It shall be the responsibility of the national government to extend technical and financial assistance to LGUs for the accomplishment of their Local Climate Change Action Plans. The LGU is hereby expressly authorized to appropriate and use the amount from its Internal Revenue Allotment necessary to implement said local plan effectively, any provision in the Local Government Code to the contrary notwithstanding. Section 15. Role of Government Agencies. – To ensure the effective implementation of the framework strategy and program on climate change, concerned agencies shall perform the following functions: (a) The Department of Education (DepED) shall integrate climate change into the primary and secondary education curricula and/or subjects, such as, but not limited to, science, biology, sibika, history, including textbooks, primers and other educational materials, basic climate change principles and concepts; (b) The Department of the Interior and Local Government (DILG) and Local Government Academy shall facilitate the development and provision of a training program for LGUs in climate change. The training program shall include socioeconomic, geophysical, policy, and other content necessary to address the prevailing and forecasted conditions and risks of particular LGUs. It shall likewise focus on women and children, especially in the rural areas, since they are the most vulnerable; (c) The Department of Environment and Natural Resources (DENR) shall oversee the establishment and maintenance of a climate change information management system and network, including on climate change risks, activities and investments, in collaboration with other concerned national government agencies, institutions and LGUs; (d) The Department of Foreign Affairs (DFA) shall review international agreements related to climate change and make the necessary recommendation for ratification and compliance by the government on matters pertaining thereto; (e) The Philippine Information Agency (PIA) shall disseminate information on climate change, local vulnerabilities and risk, relevant laws and protocols and adaptation and mitigation measures; and (f) Government financial institutions, shall, any provision in their respective charters to the contrary notwithstanding, provide preferential financial packages for climate change- related projects. In consultation with the Bangko Sentral ng Pilipinas (BSP), they shall, within thirty (30) days from the effectivity of this Act, issue and promulgate the implementing guidelines therefor. The Commission shall evaluate, recommend the approval of loans and monitor the use of said funds of LGUs.

Section 16. Coordination with Various Sectors. – In the development and implementation of the National Climate Change Action Plan, and the local action plans, the Commission shall coordinate with the nongovernment organizations (NGOs), civic organizations, academe, people’s organizations, the private and corporate sectors and other concerned stakeholder groups. Section 17. Authority to Receive Donations and/or Grants. – The Commission is hereby authorized to accept grants, contributions, donations, endowments, bequests, or gifts in cash, or in kind from local and foreign sources in support of the development and implementation of climate change programs and plans: Provided, That in case of donations from foreign governments, acceptance thereof shall be subject to prior clearance and approval of the President of the Philippines upon recommendation of the Secretary of Foreign Affairs: Provided, further, That such donations shall not be used to fund personal services expenditures and other operating expenses of the Commission. The proceeds shall be used to finance: (a) Research, development, demonstration and promotion of technologies; (b) Conduct of assessment of vulnerabilities to climate change impacts, resource inventory, and adaptation capability building; (c) Advocacy, networking and communication activities in the conduct of information campaign; and (d) Conduct of such other activities reasonably necessary to carry out the objectives of this Act, as may be defined by the Commission. Section 18. Funding Allocation for Climate Change. – All relevant government agencies and LGUs shall allocate from their annual appropriations adequate funds for the formulation, development and implementation, including training, capacity building and direct intervention, of their respective climate change programs and plans. It shall also include public awareness campaigns on the effects of climate change and energy-saving solutions to mitigate these effects, and initiatives, through educational and training programs and micro-credit schemes, especially for women in rural areas. In subsequent budget proposals, the concerned offices and units shall appropriate funds for program/project development and implementation including continuing training and education in climate change.1avvphi1 Section 19. Joint Congressional Oversight Committee. – There is hereby created a Joint Congressional Oversight Committee to monitor the implementation of this Act. The Oversight Committee shall be composed of five (5) Senators and five (5) Representatives to be appointed by the Senate President and the Speaker of the House of Representatives, respectively. The Oversight Committee shall be co-chaired by a Senator and a Representative to be designated by the Senate President and the Speaker of the House of Representatives, respectively. Its funding requirement shall be charged against the appropriations of Congress. Section 20. Annual Report. – The Commission shall submit to the President and to both Houses of Congress, not later than March 30 of every year following the effectivity of this Act, or upon the request of the Congressional Oversight Committee, a report giving a detailed account of the status of the implementation of this Act, a progress report on the implementation of the National Climate Change Action Plan and recommend legislation, where applicable and necessary. LGUs shall submit annual progress reports on the implementation of their respective local action plan to the Commission within the first quarter of the following year.

Section 21. Appropriations. – The sum of Fifty million pesos (Php50,000,000.00) is hereby appropriated as initial operating fund in addition to the unutilized fund of the Presidential Task Force on Climate Change and the Office of the Presidential Adviser on Global Warming and Climate Change. The sum shall be sourced from the President’s contingent fund. Thereafter, the amount necessary to effectively carry out the provisions of this Act shall be included in the annual General Appropriations Act. Section 22. Implementing Rules and Regulations. – Within ninety (90) days after the approval of this Act, the Commission shall, upon consultation with government agencies, LGUs, private sector, NGOs and civil society, promulgate the implementing rules and regulations of this Act: Provided, That failure to issue rules and regulations shall not in any manner affect the executory nature of the provisions of this Act. Section 23. Transitory Provisions. – Upon the organization of the Commission, the Presidential Task Force on Climate Change created under Administrative Order No. 171 and the Inter-Agency Committee on Climate Change created by virtue of Administrative Order No. 220, shall be abolished: Provided, That their powers and functions shall be absorbed by the Commission: Provided, further, That the officers and employees thereof shall continue in a holdover capacity until such time as the new officers and employees of the Commission shall have been duly appointed pursuant to the provisions of this Act. All qualified regular or permanent employees who may be transferred to the Commission shall not suffer any loss in seniority or rank or decrease in emoluments. Any employee who cannot be absorbed by the Commission shall be entitled to a separation pay under existing retirement laws Executive Order No. 15 : Creating a Philippine Council for Sustainable Development WHEREAS, the 1987 Constitution mandates a policy of the state, the protection and advancement of the right of the people to a balanced and healthful ecology in accordance with the rhythm and harmony of nature; WHEREAS, a National Conservation Strategy, as spelled out in the Philippine Strategy for Sustainable Development (PSSD), which was adopted in 1989, takes a balanced and integrated approach to environment and development issues by incorporating sustainable development principles and concepts in the national priorities of government; WHEREAS, the Philippines already adhering too the principle of sustainable development actively participated in the United Nations Conference on Environment and Development (UNCED) Summit held in Rio de Janeiro, and committed to the principles set forth in the Rio Declaration, the Agenda 21, the Conventions on Climate Change and Biodiversity; WHEREAS, the United Nations in UNCED, has adopted a resolution for the creation of a Sustainable Development Commission that will evaluate and monitor the compliance too the agreements and commitments made in Rio and in the course of it's creation urged governments to also for similar bodies that will ensure that the activities at the national level are implemented and coordinated within global efforts; WHEREAS, the agreements oblige the Philippines to translate the commitments to more concrete actions and ensure that all sectors of the society shall be involved in its cooperalization;

WHEREAS, in order to active these ends, the creation of a national sustainable development and thus assure its integration in the Philippine national policies, plans, and programs that will involve all sectors of the society. SEC 1. Creation and Composition of the Council. 1) There is hereby created a Philippine Council for Sustainable Development to be headed by the Director-General of the National Economic and Development Authority (NEDA) as Chairperson, and the Secretary of the Department of Environment and Natural Resources as Vice-Chairperson. 2) The Council will have as members committed environmentalists from the following owing departments of a position of Bureau Director of their, duly deputized to represent their respective Secretaries: Department of Foreign Affairs Department of Science and Technology Department of Finance Department of Agriculture Department of Public Works and Highways Department of Education, Culture, and Sports Department of Labor and Employment Department of Health Department of Trade and Industry Department of the Interior and Local Governments Department of Social Welfare and Developments Department of Budget and Management Department of National Defense Office of Energy Affairs 3) As civil society counterpart, the non-government community shall also have seven (7) representative in the Council. These representative shall be selected by the nongovernment community considering commitment to environmental causes, gender balance, and sector representation through a process designed by them. Sec. 2 Powers and Functions of the Council. The Council shall have the following powers and function: 1`) To review and ensure the implementation on the commitments the Philippines made in the light of the UNCED Conference; 2) To establish guidelines and mechanisms that will expand, concretize and operationalize the sustainable development principles as embodied in the Rio Declaration, the UNCED Agenda 21, the National Conservation Strategy, and the Philippine Agenda 21, and incorporate them in the preparation of the Medium Term Development Plan both at the national and local levels with active participation from the nongovernment sector a and people's organizations; 3) Too provide directions in the form of policy reforms, programs and new legislations that respond to the continuing and emerging issues and charting future actions related to environment and developments; 4) To act as the coordinating mechanism in cooperation either DFA-office of the United Nations Commission for Sustainable Development and actively solicit assistance and cooperation towards the realization of our commitments made at the UNCED; 5) To require any and all government agencies for assistance in to forum of personnel, facilities, and other resources which is essential for the performance for the duties of the Council;

6) To create sub-committees that it may deem fit in the performance of its duties; and 7) To perform such other acts which are necessary to carry out its mandated functions and responsibilities.

Section 1. Further Strengthening the PCSD. — The Philippine Council for Sustainable Development, hereinafter referred to as the Council, is hereby further strengthened, structurally and functionally, in accordance with the provisions of this Executive Order. Sec. 2. Composition of the Council. —

Sec. 3. The Secretariat. The Council shall be assisted by the Secretariat which shall be based at the Notional Economic and Development Authority whose composition will be determined by the Director-General. Sec. 4. Transitory Provisions. There shall be immediately be convened an interim Technical Working Group of seven members composed or representatives from National Economic and Development Authority (NEDA), Department of Environment and Natural Resources (DENR), Department of Foreign Affairs(DFA), Department of the Interior and Local Government (DILG), and the three representatives from nongovernment sector, which shall work out the formulation of the operational guidelines for the Council. The working group shall be assisted by a composite secretariat from NEDA and DENR, These transitory groups shall cease its function upon the Council meeting and adoption of the operating guidelines within sixty (60) days upon signing of this Order. EXECUTIVE ORDER NO. 62: FURTHER STRENGTHENING THE PHILIPPINE COUNCIL FOR SUSTAINABLE DEVELOPMENT (PCSD) WHEREAS, to ensure that the commitments made in the Rio de Janeiro Declaration are fulfilled and to realize the country’s sustainable development goals, the PCSD was established on 01 September 1992 through Executive Order No. 15; WHEREAS, to strengthen PCSD, the expansion of its membership as well as the establishment of local councils for sustainable development were provided for through the issuance of Executive Order No. 370 (s. 1996);

1. The core members from government shall be composed of Secretaries of the following Departments as permanent principal members, with an Undersecretary as alternate: a. National Economic and Development Authority; b. Department of Environment and Natural Resources; 2. Civil society, composed of people’s organizations, nongovernment organizations and sectoral/major groups representation shall have five (5) Council members selected by their community, based on their commitment to sustainable development concerns, through a process designed by them These may include the following groups: women, youth, farmers, fisherfolk, indigenous people, Moro and Cordillera people, urban poor, persons with disabilities, academe, professionals, media, religious groups and NGOs. 3. Labor and business shall have one (1) representative each in the Council. Representation shall, likewise be decided through a process to be designed by them. The Chairperson of the Council shall be the Secretary of SocioEconomic Planning and NEDA Director-General. The Secretary of the Department of Environment and Natural Resources (DENR) shall be the Vice-Chairperson. Sec. 3. Terms of Office and Meetings. — The term of office of members shall be co-terminus with their appointment or election in their respective departments or organizations.

WHEREAS, in order to operationalize sustainable development at the local level, Memorandum Order No. 47 (s. 1999) was issued mandating local government units (LGUs) to formulate and implement their sustainable integrated area development plans or Local Agenda 21 with the assistance of concerned government agencies;

The Council shall meet quarterly, or as frequently as may be deemed necessary. Special meetings may be convened at the call of the Chairperson or by a majority of the members of the Council. In the absence of the Chairperson, the ViceChairperson shall preside. In case any civil society, business or labor sector member of the Council cannot attend the meeting, he or she shall be represented by the alternate to be designated through their respective selection process for the purpose.

WHEREAS, in light of changing circumstances and, emerging issues on sustainable development locally and globally there is an urgent need to pursue new interventions through a more responsive PCSD structure;

Sec. 4. Powers and Functions of the Council. —

WHEREAS, for the PCSD to be more effective and responsive in ensuring the realization of the government’s sustainable development goals, there is a need to streamline and define its core functions and membership, keeping in mind the various agencies in government whose functions are integral components of the overall government sustainable development operational thrusts; WHEREAS, there is a need for PCSD to focus on strategic interventions that have significant and catalytic impact on sustainable development; WHEREAS, it is necessary to further strengthen the PCSD as the lead instrumentality responsible for mainstreaming sustainable development in national government and affiliated agencies, Congress, LGUs, as well as existing multistakeholder governance mechanisms. NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

1. To review and ensure the implementation of the commitments made by the Philippines in the light of the United Nations Conference on Environment and Development (UNCED) and its follow-up processes; 2. To act as the coordinating mechanism with the United Nations Commission on Sustainable Development (UNCSD) and the Governing Bodies or Secretaries of other related multilateral conventions, through the Department of Foreign Affairs (DFA); 3. To establish guidelines and mechanisms that will ensure that the sustainable development principles, as embodied in the Rio Declaration, Agenda 21, and the Philippine Agenda 21, are integrated in the formulation of national, regional and local development policies, plans and programs; 4. To formulate policies and recommend new actions to appropriate bodies on sustainable development issues focusing on the environment dimensions of social and economic interventions and the social and economic dimensions of environment interventions; 5. To review and monitor plans, policies, program and

legislation on sustainable development to promote efficiency and timeliness of their execution and ensure consistency and coordination among the Legislative and Executive branches of government, local government units, civil society, business, labor and other concerned entities/sectors, and existing multistakeholder governance mechanisms; 6. To establish a networking mechanism to link the Council with local and international organizations involved in sustainable development; 7. To create, reorganize or abolish committees of the Council, ad-hoc or permanent, and to define their structure, functions and limitations; 8. To submit its annual work program with actionable and time bounded targets and regularly report to the President the status of implementation and achievement of specific targets thereof; 9. To perform such other acts which are necessary to carry out its mandated functions and responsibilities. Sec. 5. Participation of Other Government Agencies in the Council. — The Council can call upon other government agencies and instrumentalities, civil society, business and labor sector organizations to participate in Council business, including its meetings, if so warranted by conditions as may exist from time to time. For this purpose, other government agencies shall identify a PCSD focal officer not lower than a rank of Director who shall coordinate their agency’s participation in PCSD concerns. Sec. 6. Secretariat. — The Council shall be assisted by a Coordinating Secretariat which shall be based at the NEDA, the composition of which shall be determined by the DirectorGeneral, and a Counterpart Secretariat, the composition of which shall be determined by the Civil Society Counterpart Council for Sustainable Development (CSCCSD). Sec. 7. Budget. — There shall be provided in the General Appropriations Act (GAA) a regular line item under the NEDA budget to cover the operational requirements of the Council subject to the prescribed budgetary guidelines. Other member-agencies of the Council shall also include a line item in the GAA under their respective agency budgets to cover the cost of their activities related to PCSD.

MEMORANDUM ORDER NO. 399: DIRECTING THE OPERATIONALIZATION OF THE PHILIPPINE AGENDA 21 AND MONITORING ITS IMPLEMENTATION

Whereas, Article 2, Section 12 of the Constitution mandates as a policy of the State the protection and advancement of the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature;

stakeholders of society; Whereas, the operationalization of the Philippine Agenda 21 shall provide the overall direction and serve as an enabling environment in achieving sustainable development; Section 1. Adoption and Operationalization of the Philippine Agenda 21. The Philippine Agenda 21, as the national action agenda for sustainable development, is hereby adopted. Section 2. Overall Administration. The Philippine Council for Sustainable Development shall oversee and monitor the operationalization of the Philippine Agenda 21. In this regard, the Council shall provide the coordinating and monitoring mechanisms for its implementation. For this purpose, it shall mobilize coordinating bodies including the Regional Development Councils (RDCs) and the local councils for sustainable development. Section 3. Collaborating Agencies. All government agencies, departments, and instrumentalities are directed to adopt and translate the principles and action agenda contained in the Philippine Agenda 21 in their respective workplans, programs and projects and report on their progress and impacts to the PCSD. Section 4. Role of the Department of Interior and Local Government (DILG) and the Local Government Units (LGUs). The LGUs, in coordination with the local business and civil society, shall implement the Philippine Agenda 21 through the integration of sustainable development concerns in their respective plans, programs and projects and the formulation of their respective Local Agenda 21, where appropriate. Section 5. Role of the Civil Society, Labor and Business Sectors. The PCSD shall coordinate with civil society, labor and business sectors in operationalizing Philippine Agenda 21. Major stakeholders from these sectors are thereby enjoined to adopt and implement the principles and action agenda contained in the Philippine Agenda 21. Section 6. Funding. The PCSD, in the coordination with the Department of Finance (DOF), Department of Budget and Management (DBM), and the National Economic and Development Authority (NEDA), shall identify funding sources in implementing and monitoring the Philippine Agenda 21.

Cases Republic of the Philippines vs. The City of Davao Republic vs. Alvarez, in his capacity as Sec. of DENR •

Whereas, the government adheres to the sustainable development principles embodied in the Rio Declaration and adopted by the United Nations Conference on Environment and Development in Rio de Janeiro, Brazil in 1992, and to which the Philippines is a signatory; Whereas, the Philippine Council for Sustainable Development (PCSD), created by virtue of Executive Order No. 15 (Series of 1992) is mandated to coordinate the formulation of Philippine Agenda 21; Whereas, the Philippine Agenda 21 was formulated after an extensive and intensive process of coordination, cooperation, counterparting and consensus-building among the various

•

Alvarez filed an application for a Certificate of NonCoverage for its proposed project, the Davao Artica Sports Dome, with the Environmental Management Bureau (EMB), Region 11. The EMB Region 11 denied the application on ground that the proposed project was within an environmentally critical area, and ruled that under the Environmental Impact Statement System, the City of Davao must undergo the environmental impact assessment (EIA) process to secure an Environmental Compliance Certificate (ECC), before it can proceed with the construction of its project Believing that it was entitled to a Certificate of NonCoverage, respondent filed a petition for mandamus with the RTC of Davao alleging that the proposed project was neither an environmentally critical project nor within an environmentally critical area, thus it was outside the scope of the EIS system.

•

The RTC granted the writ of mandamus and directed EMB to issue a Certificate of Non-Coverage. It ruled that there is nothing in the EIA System guidelines which requires LGUs to comply with the EIS law, as only agencies and instrumentalities are mandated to go through the EIA process for their proposed projects which have significant effect on the quality of the environment. A local government unit, not being an agency or instrumentality of the National Government, is deemed excluded

I.

II.

Issue: Whether LGUs are covered by the EIA System?

c.

III.

Further, it is a rule of statutory construction that every part must be read with other parts, thus, the TC in declaring local government units as exempt from the coverage of the EIS law, failed to relate Section 2 of PD 1586 to the several provision of the same law. Section 4 of PD 1586 clearly states that “no person, partnership or corporation shall undertake or operate any such declared environmentally critical project or area without first securing an Environmental Compliance Certificate issued by the President or his duly authorized representative. Undoubtedly therefore, local government units are not excluded from the coverage of PD 1586. Sec. 1 stated that the policy of the State is to attain an orderly balance between socio-economic growth and environmental protection. The Whereas clause stresses that such is only possible if we adopt an integrated environmental protection program where all the sectors of the community are involved, i.e., the government and the private sectors. The local government units, as part of the machinery of the government, cannot therefore be deemed as outside the scope of the EIS system This however presuppose that a project, for which an Environmental Compliance Certificate is necessary, is environmentally critical or within an environmentally critical area. In the case at bar, respondent has sufficiently shown that the Artica Sports Dome will not have a significant negative environmental impact because it is not an environmentally critical project and it is not located in an environmentally critical area. They submitted Certification from the City Planning and Development Office, PHILVOLCS, CENRO-West in support thereof. The Environmental Impact Statement System, which ensures environmental protection and regulates certain government activities affecting the environment, was established by Presidential Decree No. 1586. Under Article II, Section 1, of the Rules and Regulations Implementing PD 1586, the declaration of certain projects or areas as environmentally critical, and which shall fall within the scope of the Environmental Impact Statement System, shall be by Presidential Proclamation. Pursuant thereto, Proclamation No. 2146 was issued proclaiming the following areas and types of projects as environmentally critical and within the scope of the Environmental Impact Statement System established under PD 1586: A.

Environmentally Critical Projects

a. b.

industries

Resource Extractive Industries Major mining and quarrying projects Forestry projects 1. 2. 3.

Decision: The Local Government Code provides that it is the duty of the LGUs to promote the people’s right to a balanced ecology. Pursuant to this, an LGU, like the City of Davao, cannot claim exemption from the coverage of PD 1586. As a body politic endowed with governmental functions, an LGU has the duty to ensure the quality of the environment, which is the very same objective of PD 1586.

Heavy Industries a. Non-ferrous metal industries b. Iron and steel mills c. Petroleum and petro-chemical including oil and gas d. Smelting plants

B.

Logging Major wood processing projects Introduction of fauna (exotic-animals) in public/private forests 4. Forest occupancy 5. Extraction of mangrove products 6. Grazing Fishery Projects 1. Dikes for/and fishpond development projects Infrastructure Projects a. Major dams b. Major power plants (fossil-fueled, fueled, hydroelectric or geothermal) c. Major reclamation projects d. Major roads and bridges

nuclear

Environmentally Critical Areas 1. All areas declared by law as national parks, watershed reserves, wildlife preserves and sanctuaries; 2. Areas set aside as aesthetic potential tourist spots; 3. Areas which constitute the habitat for any endangered or threatened species of indigenous Philippine Wildlife (flora and fauna); 4. Areas of unique historic, archaeological, or scientific interests; 5. Areas which are traditionally occupied by cultural communities or tribes; 6. Areas frequently visited and/or hard-hit by natural calamities (geologic hazards, floods, typhoons, volcanic activity, etc.); 7. Areas with critical slopes; 8. Areas classified as prime agricultural lands; 9. Recharged areas of aquifers; 10. Water bodies characterized by one or any combination of the following conditions; a. tapped for domestic purposes b. within the controlled and/or protected areas declared by appropriate authorities c. which support wildlife and fishery activities 11. Mangrove areas characterized by one or any combination of the following conditions: a. with primary pristine and dense young growth; b. adjoining mouth of major river systems; c. near or adjacent to traditional productive fry or fishing grounds; d. which act as natural buffers against shore erosion, strong winds and storm floods; e. on which people are dependent for their livelihood. 12. Coral reefs, characterized by one or any combinations of the following conditions: a. with 50% and above live coralline cover; b. spawning and nursery grounds for fish; c. which act as natural breakwater of coastlines.

Environmentally Non-Critical Projects. — All other projects, undertakings and areas not declared by the President as environmentally critical shall be considered as non-critical and shall not be required to submit an environmental impact statement. The National Environmental Protection Council, thru the Ministry of Human Settlements may however require non-critical projects and undertakings to provide additional environmental safeguards as it may deem necessary. The Artica Sports Dome in Langub does not come close to any of the projects or areas enumerated above. Neither is it analogous to any of them. It is clear, therefore, that the said project is not classified as environmentally critical, or within an environmentally critical area. Consequently, the DENR has no choice but to issue the Certificate of Non-Coverage. It becomes its ministerial duty, the performance of which can be compelled by writ of mandamus, such as that issued by the trial court in the case at bar. Laguna Lake Development Authority vs CA RA 4850 was enacted creating the "Laguna Lake Development Authority." This agency was supposed to accelerate the development and balanced growth of the Laguna Lake area and the surrounding provinces, cities and towns, in the act, within the context of the national and regional plans and policies for social and economic development. PD 813 amended certain sections RA 4850 because of the concern for the rapid expansion of Metropolitan Manila, the suburbs and the lakeshore towns of Laguna de Bay, combined with current and prospective uses of the lake for municipalindustrial water supply, irrigation, fisheries, and the like. To effectively perform the role of the Authority under RA 4850, the Chief Executive issued EO 927 further defined and enlarged the functions and powers of the Authority and named and enumerated the towns, cities and provinces encompassed by the term "Laguna de Bay Region". Also, pertinent to the issues in this case are the following provisions of EO 927 which include in particular the sharing of fees: Sec 2: xxx the Authority shall have exclusive jurisdiction to issue permit for the use of all surface water for any projects or activities in or affecting the said region including navigation, construction, and operation of fishpens, fish enclosures, fish corrals and the like. SEC. 3. Collection of Fees. The Authority is hereby empowered to collect fees for the use of the lake water and its tributaries for all beneficial purposes including but not limited to fisheries, recreation, municipal, industrial, agricultural, navigation, irrigation, and waste disposal purpose; Provided, that the rates of the fees to be collected, and the sharing with other government agencies and political subdivisions, if necessary, shall be subject to the approval of the President of the Philippines upon recommendation of the Authority's Board, except fishpen fee, which will be shared in the following manner: 20 percent of the fee shall go to the lakeshore local governments, 5 percent shall go to the Project Development Fund which shall be administered by a Council and the remaining 75 percent shall constitute the share of LLDA. However, after the implementation within the threeyear period of the Laguna Lake Fishery Zoning and Management Plan the sharing will be modified as follows: 35 percent of the fishpen fee goes to the lakeshore local governments, 5 percent goes to the Project Development Fund and the remaining 60 percent shall be retained by LLDA; Provided, however, that the share of LLDA shall form part of its corporate funds and shall not be remitted to the National Treasury as an exception to the provisions of Presidential Decree No. 1234. Then came Republic Act No. 7160. The municipalities in the Laguna Lake Region interpreted the provisions of this law to mean that the newly passed law gave municipal governments

the exclusive jurisdiction to issue fishing privileges within their municipal waters because R.A. 7160 provides: "Sec. 149. Fishery Rentals; Fees and Charges (a) Municipalities shall have the exclusive authority to grant fishery privileges in the municipal waters and impose rental fees or charges therefor in accordance with the provisions of this Section. Municipal governments thereupon assumed the authority to issue fishing privileges and fishpen permits. Big fishpen operators took advantage of the occasion to establish fishpens and fishcages to the consternation of the Authority. Unregulated fishpens and fishcages occupied almost one-third the entire lake water surface area, increasing the occupation drastically from 7,000 ha in 1990 to almost 21,000 ha in 1995. The Mayor's permit to construct fishpens and fishcages were all undertaken in violation of the policies adopted by the Authority on fishpen zoning and the Laguna Lake carrying capacity. In view of the foregoing circumstances, the Authority served notice to the general public that: “ 1. All fishpens, fishcages and other aqua-culture structures in the Laguna de Bay Region, which were not registered or to which no application for registration and/or permit has been filed with Laguna Lake Development Authority as of March 31, 1993 are hereby declared outrightly as illegal. 2. All fishpens; fishcages and other aqua-culture structures so declared as illegal shall be subject to demolition which shall be undertaken by the Presidential Task Force for illegal Fishpen and Illegal Fishing. 3. Owners of fishpens, fishcages and other aqua-culture structures declared as illegal shall, without prejudice to demolition of their structures be criminally charged in accordance with Section 39-A of Republic Act 4850 as amended by P.D. 813 for violation of the same laws. Violations of these laws carries a penalty of imprisonment of not exceeding 3 years or a fine not exceeding Five Thousand Pesos or both at the discretion of the court. All operators of fishpens, fishcages and other aqua-culture structures declared as illegal in accordance with the foregoing Notice shall have one (1) month on or before 27 October 1993 to show cause before the LLDA why their said fishpens, fishcages and other aqua-culture structures should not be demolished/dismantled." One month, thereafter, the Authority sent notices to the concerned owners of the illegally constructed fishpens, fishcages and other aqua-culture structures advising them to dismantle their respective structures within 10 days from receipt thereof, otherwise, demolition shall be effected. The fishpen owners filed injunction cases against the LLDA. The LLDA filed motions to dismiss the cases against it on jurisdictional grounds. The motions to dismiss were denied. Meanwhile, TRO/writs of preliminary mandatory injunction were issued enjoining the LLDA from demolishing the fishpens and similar structures in question. Hence, the present petition for certiorari, prohibition and injunction. The CA dismissed the LLDA’s consolidated petitions. It ruled that (A) LLDA is not among those quasi-judicial agencies of government appealable only to the Court of Appeals; (B) the LLDA charter does vest LLDA with quasi-judicial functions insofar as fishpens are concerned; (C) the provisions of the LLDA charter insofar as fishing privileges in Laguna de Bay are concerned had been repealed by the Local Government Code of 1991; (D) in view of the aforesaid repeal, the power to grant permits devolved to respective local government units concerned. Issue: Which agency of the Government - the LLDA or the towns and municipalities comprising the region - should exercise jurisdiction over the Laguna Lake and its environs insofar as the issuance of permits for fishery privileges is concerned? Held:

LLDA

Ratio: Section 4 (k) of RA 4850, the provisions of PD 813, and Section 2 of EO 927, specifically provide that the LLDA shall have exclusive jurisdiction to issue permits for the use or all surface water for any projects or activities in or affecting the said region, including navigation, construction, and operation of fishpens, fish enclosures, fish corrals and the like. On the other hand, RA 7160 has granted to the municipalities the exclusive authority to grant fishery privileges in municipal waters. The Sangguniang Bayan may grant fishery privileges to erect fish corrals, oyster, mussels or other aquatic beds or bangus fry area within a definite zone of the municipal waters. The provisions of RA7160 do not necessarily repeal the laws creating the LLDA and granting the latter water rights authority over Laguna de Bay and the lake region. The Local Government Code of 1991 does not contain any express provision which categorically expressly repeal the charter of the Authority. It has to be conceded that there was no intent on the part of the legislature to repeal Republic Act No. 4850 and its amendments. The repeal of laws should be made clear and expressed. It has to be conceded that the charter of the LLDA constitutes a special law. RA 7160 is a general law. It is basic is basic in statutory construction that the enactment of a later legislation which is a general law cannot be construed to have repealed a special law. It is a well-settled rule in this jurisdiction that "a special statute, provided for a particular case or class of cases, is not repealed by a subsequent statute, general in its terms, provisions and application, unless the intent to repeal or alter is manifest, although the terms of the general law are broad enough to include the cases embraced in the special law." Where there is a conflict between a general law and a special statute, the special statute should prevail since it evinces the legislative intent more clearly that the general statute. The special law is to be taken as an exception to the general law in the absence of special circumstances forcing a contrary conclusion. This is because implied repeals are not favored and as much as possible, given to all enactments of the legislature. A special law cannot be repealed, amended or altered by a subsequent general law by mere implication. Considering the reasons behind the establishment of the Authority, which are enviromental protection, navigational safety, and sustainable development, there is every indication that the legislative intent is for the Authority to proceed with its mission. We are on all fours with the manifestation of LLDA that "Laguna de Bay, like any other single body of water has its own unique natural ecosystem. The 900 km lake surface water, the 8 major river tributaries and several other smaller rivers that drain into the lake, the 2,920 km2 basin or watershed transcending the boundaries of Laguna and Rizal provinces, constitute one integrated delicate natural ecosystem that needs to be protected with uniform set of policies; if we are to be serious in our aims of attaining sustainable development. This is an exhaustible natural resource-a very limited one-which requires judicious management and optimal utilization to ensure renewability and preserve its ecological integrity and balance. Managing the lake resources would mean the implementation of a national policy geared towards the protection, conservation, balanced growth and sustainable development of the region with due regard to the inter-generational use of its resources by the inhabitants in this part of the earth. The authors of Republic Act 4850 have foreseen this need when they passed this LLDA law-the special law designed to govern the management of our Laguna de Bay lake resources. Laguna de Bay therefore cannot be subjected to fragmented concepts of management policies where lakeshore local government units exercise exclusive dominion over specific portions of the lake water. The implementation of a cohesive and integrated lake water resource management policy, therefore, is necessary to conserve, protect and sustainably develop Laguna de Bay."

The power of the LGUs to issue fishing privileges was clearly granted for revenue purposes. This is evident from the fact that Section 149 of the New Local Government Code empowering local governments to issue fishing permits is embodied in Chapter 2, Book II, of Republic Act No. 7160 under the heading, "Specific Provisions On The Taxing And Other Revenue Raising Power of LGUs.” On the other hand, the power of the Authority to grant permits for fishpens, fishcages and other aqua-culture structures is for the purpose of effectively regulating and monitoring activities in the Laguna de Bay region and for lake quality control and management. 6 It does partake of the nature of police power which is the most pervasive, the least limitable and the most demanding of all State powers including the power of taxation. Accordingly the charter of the Authority which embodies a valid exercise of police power should prevail over the Local Government Code of 1991 on matters affecting Laguna de Bay. There should be no quarrel over permit fees for fishpens, fishcages and other aqua-culture structures in the Laguna de Bay area. Section 3 of Executive Order No. 927 provides for the proper sharing of fees collected. In respect to the question as to whether the Authority is a quasi-judicial agency or not, it is our holding that, considering the provisions of Section 4 of Republic Act No. 4850 and Section 4 of Executive Order No. 927, series of 1983, and the ruling of this Court in Laguna Lake Development Authority vs. Court of Appeals, there is no question that the Authority has express powers as a regulatory a quasi-judicial body in respect to pollution cases with authority to issue a "cease a desist order" and on matters affecting the construction of illegal fishpens, fishcages and other aqua-culture structures in Laguna de Bay. The Authority's pretense, however, that it is co-equal to the Regional Trial Courts such that all actions against it may only be instituted before the Court of Appeals cannot be sustained. On actions necessitating the resolution of legal questions affecting the powers of the Authority as provided for in its charter, the Regional Trial Courts have jurisdiction. In view of the foregoing, this Court holds that Section 149 of RA 7160, otherwise known as the Local Government Code of 1991, has not repealed the provisions of the charter of the LLDA, Republic Act No. 4850, as amended. Thus, the Authority has the exclusive jurisdiction to issue permits for the enjoyment of fishery privileges in Laguna de Bay to the exclusion of municipalities situated therein and the authority to exercise such powers as are by its charter vested on it.

PRESIDENTIAL DECREE No. 1586: ESTABLISHING AN ENVIRONMENTAL IMPACT STATEMENT SYSTEM, INCLUDING OTHER ENVIRONMENTAL MANAGEMENT RELATED MEASURES AND FOR OTHER PURPOSES WHEREAS, the pursuit of a comprehensive and integrated environment protection program necessitates the establishment and institutionalization of a system whereby the exigencies of socio-economic undertakings can be reconciled with the requirements of environmental quality; WHEREAS, the regulatory requirements of environmental Impact Statements and Assessments instituted in pursuit of this national environmental protection program have to be worked into their full regulatory and procedural details in a manner consistent with the goals of the program. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution do hereby order and declare:

Section 1. Policy. It is hereby declared the policy of the State to attain and maintain a rational and orderly balance between socio-economic growth and environmental protection. Section 2. Environmental Impact Statement System. There is hereby established an Environmental Impact Statement System founded and based on the environmental impact statement required, under Section 4 of Presidential Decree No. 1151, of all agencies and instrumentalities of the national government, including government-owned or controlled corporations, as well as private corporations, firms and entities, for every proposed project and undertaking which significantly affect the quality of the environment. Section 3. Determination of Lead Agency. The Minister of Human Settlements or his designated representative is hereby authorized to name the lead agencies referred to in Section 4 of Presidential Decree No. 1151 which shall have jurisdiction to undertake the preparation of the necessary environmental impact statements on declared environmentally critical projects and areas. All Environmental Impact Statements shall be submitted to the National Environmental Protection Council for review and evaluation. Section 4. Presidential Proclamation of Environmentally Critical Areas and Projects. The President of the Philippines may, on his own initiative or upon recommendation of the National Environmental Protection Council, by proclamation declare certain projects, undertakings or areas in the country as environmentally critical. No person, partnership or corporation shall undertake or operate any such declared environmentally critical project or area without first securing an Environmental Compliance Certificate issued by the President or his duly authorized representative. For the proper management of said critical project or area, the President may by his proclamation reorganize such government offices, agencies, institutions, corporations or instrumentalities including the re-alignment of government personnel, and their specific functions and responsibilities. For the same purpose as above, the Ministry of Human Settlements shall: (a) prepare the proper land or water use pattern for said critical project(s) or area (s); (b) establish ambient environmental quality standards; (c) develop a program of environmental enhancement or protective measures against calamituous factors such as earthquake, floods, water erosion and others, and (d) perform such other functions as may be directed by the President from time to time. Section 5. Environmentally Non-Critical Projects. All other projects, undertakings and areas not declared by the President as environmentally critical shall be considered as non-critical and shall not be required to submit an environmental impact statement. The National Environmental Protection Council, thru the Ministry of Human Settlements may however require non-critical projects and undertakings to provide additional environmental safeguards as it may deem necessary. Section 6. Secretariat. The National Environmental Protection Council is hereby authorized to constitute the necessary secretariat which will administer the Environmental Impact Statement System and undertake the processing and evaluation of environmental impact statements. Section 7. Management and Financial Assistance. The Ministry of Human Settlements is hereby authorized to provide management and financial support to government offices and instrumentalities placed under its supervision pursuant to this Decree financed from its existing appropriation or from budgetary augmentation as the Minister of Human Settlements may deem necessary.

Section 8. Rules and Regulations. The National Environmental Protection Council shall issue the necessary rules and regulations to implement this Decree. For this purpose, the National Pollution Control Commission may be availed of as one of its implementing arms, consistent with the powers and responsibilities of the National Pollution Control Commission as provided in P.D. No. 984. Section 9. Penalty for Violation. Any person, corporation or partnership found violating Section 4 of this Decree, or the terms and conditions in the issuance of the Environmental Compliance Certificate, or of the standards, rules and regulations issued by the National Environmental Protection Council pursuant to this Decree shall be punished by the suspension or cancellation of his/its certificate or and/or a fine in an amount not to exceed Fifty Thousand Pesos (P50,000.00) for every violation thereof, at the discretion of the National Environmental Protection Council. Section 10. Environmental Revolving Fund. Proceeds from the penalties prescribed in the preceding Section 9 and other penalties imposed by the National Pollution Control Commission as authorized in P.D. 984, shall be automatically appropriated into an Environment Revolving Fund hereby created as an exemption to P.D. 711 and P.D. 1234. The fund shall be used exclusively for the operation of the National Environmental Protection Council and the National Pollution Control Commission in the implementation of this Decree. The rules and regulations for the utilization of this fund shall be formulated by the Ministry of Human Settlements and submitted to the President for approval. Section 11. Repealing Clause. The Inter-Agency Advisory Council of the National Pollution Control Commission created under Section 4 of P.D. 984 is hereby abolished and its powers and responsibilities are forthwith delegated and transferred to the Control of the National Environmental Protection Council. All other laws, decrees, executive orders, rules and regulations inconsistent herewith are hereby repealed, amended or modified accordingly.

DENR Administrative Order No. 2003- 30 SUBJECT: Implementing Rules and Regulations (IRR) for the Philippine Environmental Impact Statement (EIS) System Consistent with the continuing effort of the Department of Environment and Natural Resources (DENR) to rationalize and streamline the implementation of the Philippine Environmental Impact Statement (EIS) System established under Presidential Decree (PD) No. 1586, Presidential Proclamation No. 2146 defining the scope of the EIS System and pursuant to Administrative Order No. 42 issued by tile Office of the President on November 2, 2002, the following rules and regulations are hereby promulgated; ARTICLE I BASIC POLICY, OPERATING PRINCIPLES, OBJECTIVES AND DEFINITION OF TERMS Section 1. Basic Policy and Operating Principles Consistent with the principles of sustainable development, it is the policy of the DENR to implement a systems-oriented and integrated approach to the LIS system to ensure a rational balance between socio-economic development and environmental protection for the benefit of present and future generations. The following are the key operating principles in the implementation of the Philippine EIS System:

a. The EIS System is concerned primarily with assessing the direct and indirect impacts of a project on the biophysical and human environment and ensuring that these impacts addressed by appropriate environmental protection and enhancement measures. b. The EIS System aids proponents in incorporating environmental considerations in planning their projects as well as in determining the environment's impact on their project. c. Project proponents are responsible for determining and disclosing all relevant information necessary for a methodical ' assessment of the environmental impacts of their projects; d. The review of the EIS by EMB shall be guided by three general criteria: (1) that environmental considerations are integrated into the overall project planning, (2) that the assessment is technically sound and proposed environmental mitigation, measures are effective, and (3) that , social acceptability is based on informed public participation; e. Effective regulatory review of the EIS depends largely on timely full; and accurate disclosure of relevant: information by project proponents and, other stakeholders in the EIA process f. The social acceptability of a project is a result of meaningful public participation, which shall be assessed as part of the Environmental Compliance Certificate (ECC) application, based on concerns related to the project's environmental impacts; g. The timelines prescribed by this Order, within which an Environmental - Compliance Certificate must be issued, or denied, apply only to processes and actions within the Environmental Management Bureau's (EMB) control and do not include actions or activities that are the responsibility of the proponent. Section 2. Objective The objective of this Administrative Order is to rationalize and streamline the EIS System to make it more effective as a project planning and management tool by: a. Making the System more responsive to the demands and needs of the project proponents and the various stakeholders; b. Clarifying the, coverage of the System and updating it to take into consideration industrial and technological innovations and trends c. Standardizing requirements to ensure focus on critical environment parameters; d. Simplifying procedures for processing ECC applications, and establishing measures to ensure adherence to ECC conditions by project proponents, and e. Assuring that critical environmental concerns are addressed during project development and implementation Section 3. Definition of Terms

c Environment - Surrounding air, water (both ground and surface), land, flora, fauna, humans and their interrelations. d. Environmental Compliance Certificate (ECC)- document issued by the DENR/EMB after a positive review of an ECC application, certifying that based on the representations of the proponent, the proposed project or undertaking will not cause significant negative: environmental impact. The ECC also certifies that the proponent has complied with all the requirements of the EIS System and has committed to implement its approved Environmental Management Plan. The ECC contains specific measures and conditions that the project proponent has to undertake before and during the operation of a project, and in some cases, during the project's abandonment phase to mitigate identified environmental impacts. e. Environmentally Critical Area (ECA) - area delineated as environmentally sensitive such that significant environmental impacts are expected if certain types of proposed projects or programs are located, developed or, implemented in it. f. Environmentally Critical Project (ECP) - project or program that has high potential for significant negative environmental impact. g. Environmental Guarantee Fund (EGF) - fund to be set up by a project proponent which shall be readily accessible and disbursable for the immediate clean-up or rehabilitation of areas affected by damages in the environment and the resulting deterioration of environmental quality as a direct consequence of a project's construction, operation or abandonment. It shall likewise be used to compensate parties and communities affected by the negative impacts of the project, and to fund community-based environment related projects including, but not limited to, information and education and emergency preparedness programs. h. Environmental Impact Assessment (EIA) - process that involves evaluating and predicting the likely impacts of a project (including cumulative impacts) on the environment during construction, commissioning, operation and abandonment. It also includes designing appropriate preventive, mitigating and enhancement measures addressing these consequences to protect the environment and the community's welfare. The process is undertaken by, among others, the project proponent and/or EIA Consultant, EMB, a Review Committee, affected communities and other stakeholders. i. Environmental Impact Assessment Consultant - a professional or group of professionals commissioned by the proponent to prepare the EIS/IEE and other related documents. In some cases, the person or group referred to may be the proponent's technical staff. j. Environmental Impact Assessment Review Committee (EIARC) - a body of independent technical experts and professionals of known probity from various fields organized by the EMB to evaluate the EIS and other related documents and to make appropriate recommendations regarding the issuance or non-issuance of an ECC.

a. Certificate, of Non-Coverage - a certification issued by the EMB certifying that, based on the submitted project description, the project is not covered by the EIS System and is not required to secure an ECC

k. Environmental Impact Statement (EIS) - document, prepared and submitted by the project proponent and/or EIA Consultant that serves as an application for an ECC. It is a comprehensive study of the significant impacts of a project on the environment. It includes an Environmental Management Plan/Program that the proponent will fund and implement to protect the environment

b. Co-located projects / undertakings- projects, or series of similar projects or a project subdivided to several phases and/or stages by the same proponent, located in contiguous areas.

l. Environmental Management Plan/Program (EMP) - section in the EIS that details the prevention, mitigation, compensation, contingency and monitoring measures to enhance positive impacts and minimize negative impacts and risks of a

For the purpose of this Order, the following definitions shall be applied;

proposed project or undertaking. For operating projects, the EMP can also be derived from an EMS,

and single projects under Category C, as well as for Category D projects.

m. Environmental Management Systems (EMS) - refers to the EMB PEPP EMS as provided for under DAO 2003-14, which is a part of the overall management system of a project or organization that includes environmental policy, organizational structure, planning activities, responsibilities, practices, procedures, processes and resources for developing, implementing, achieving, reviewing and maintaining an improved overall environmental performance.

Y. Project or Undertaking - any activity, regardless of scale or magnitude, which may have significant impact on the environment.

n. Environmental Monitoring Fund (EMF) -fund that a proponent shall set up after an ECC is issued for its project or undertaking, to be used to support the activities of the multipartite monitoring team. It shall be immediately accessible and easily disbursable. o. Environmental Performance - capability of proponents to mitigate environmental impacts of projects or programs. p. Environmental Performance Report and Management Plan (EPRMP) - documentation of the actual cumulative environmental impacts and effectiveness of current measures for single projects that are already operating but without ECC's, i.e., Category A-3. For Category B-3 projects, a checklist form of the EPRMP would suffice. q. Environmental Risk Assessment (ERA) - assessment, through the use of universally accepted and scientific methods, of risks associated with a project. It focuses on determining the probability of occurrence of accidents and their magnitude (e.g. failure, of containment or exposure to hazardous materials or situations.) r. EMS-based EMP - environmental management plan based on the environmental management system (EMS) standard as defined in the DAO 2003-14. s. Initial Environmental Examination (IEE) Report – document similar to an EIS, but with reduced details and depth of assessment and discussion t. Initial Environmental Examination (IEE) Checklist Report simplified checklist version of an IEE Report, prescribed by the DENR, to be filled up by a proponent to identify and assess a project's environmental impacts and the mitigation/enhancement measures to address such impacts. u. Multipartite Monitoring Team (MMT) - community-based multi-sectoral team organized for the purpose of monitoring the proponent's compliance with ECC conditions, EMP and applicable laws, rules and regulations. v. Programmatic Environmental Impact Statement (PEIS) documentation of comprehensive studies on environmental baseline conditions of a contiguous area. It also includes an assessment of the carrying capacity of the area to absorb impacts from co-located projects such as those in industrial estates or economic zones (ecozones), w. Programmatic Environmental Performance Report and Management Plan (PEPRMP) - documentation of actual cumulative environmental impacts of collocated projects with proposals for expansion. The PEPRMP should also describe the effectiveness of current environmental mitigation measures and plans for performance improvement. x. Project Description (PD) - document, which may also be a chapter in an EIS, that describes the nature, configuration, use of raw materials and natural resources, production system, waste or pollution generation and control and the activities of a proposed project. It includes a description of the use of human resources as well as activity timelines, during the pre-construction, construction, operation and abandonment phases. It is to be used for reviewing co-located

z. Proponent - any natural or juridical person intending to implement a project or undertaking. aa. Public Participation - open, transparent, gender-sensitive, and community based process aimed at ensuring the social acceptability of a project or undertaking, involving the broadest range of stakeholders, commencing at the earliest possible stage, of project design and development and continuing until post-assessment monitoring. bb. Procedural Review - phase in the ECC application review process to check for the completeness the required documents, conducted by EIAM Division at the EMB Central Office or Regional Office. cc. Process Industry - an industry whose project operation stage involves chemical, mechanical or other processes. dd. Scoping - the stage in the EIS System where information and project impact assessment requirements are established to provide the proponent and the stakeholders the scope of work and terms of reference for the EIS. ee. Secretary - the Secretary of the DENR. ff. Social Acceptability - acceptability of a project by affected communities based on timely and informed participation in the EIA process particularly with regard to environmental impacts that are of concern to them. gg. Stakeholders - entities who may be directly significantly affected by the project or undertaking.

and

hh. Substantive Review - the phase in the EIA process whereby the document submitted is subjected to technical evaluation by the EIARC. ii. Technology - all the knowledge, products, processes, tools, methods and systems employed in the creation of goods or providing services. ARTICLE II ECC APPLICATION PROCEDURES

PROCESSING

AND

APPROVAL

Section 4. Scope of the EIS System 4.1 In general, only projects that pose potential significant impact to the environment shall be required to secure ECC's. In coordination with the Department of Trade and Industry (DTI) and other concerned government agencies, the EMB is authorized to update or make appropriate revisions to the technical guidelines for EIS System implementation. 4.2 The issuance of ECC or CNC for a project under the EIS System does not exempt the proponent from securing other government permits and clearances as required by other laws. In determining the scope of the EIS System, two factors are considered: (i) the nature of the project and its potential to cause significant negative environmental impacts, and (ii) the sensitivity or vulnerability of environmental resources in the project area. 4.3 The specific criteria for, determining projects or undertakings to be covered by the EIS System are as follows: a. Characteristics of the project or undertaking • Size of the project

• • • •

Cumulative nature of impacts vis-a-vis: other projects Use of natural resources Generation of waste and environment-related nuisance Environment-related hazards and risk of accidents

b. Location of the Project • Vulnerability of the project area to disturbances due to its ecological importance, endangered or protected status • Conformity of the proposed project to existing land use, based on approved zoning or on national laws and regulations • Relative abundance, quality and regenerative capacity of natural resources in the area, including the impact absorptive capacity of the environment c. Nature of the potential impact • Geographic extent of the impact and size of affected population • Magnitude and complexity of the impact • Likelihood, duration, frequency, and reversibility of the impact The following are the categories of projects/undertakings under the EIS system: Category A. Environmentally Critical Projects (ECPs) with significant potential to cause negative environmental impacts Category B. Projects that are not categorized as ECPs, but which may cause negative environmental impacts because they are located in Environmentally Critical Areas (ECA's) Category C. Projects intended to directly enhance environmental quality or address existing environmental problems not falling under Category A or B. Category D. Projects unlikely to cause adverse environmental impacts. 4.4 Proponents of co-located or single projects that fall under Category A and B are required to secure ECC. For co-located projects, the proponent has the option to secure a Programmatic ECC. For ecozones, ECC application may be programmatic based on submission of a programmatic EIS, or locator-specific based on submission of project EIS by each locator. 4.5 Projects under Category C are required submit Project Description. 4.6 Projects classified under Category D may secure a CNC. The EMB-DENR, however, may require such, projects or undertakings to provide additional environmental safeguards as it may deem necessary. , 4.7 Projects/undertakings introducing new technologies or construction technique but which may cause significant negative environmental impacts shall be required to submit a Project Description Which will be used as basis by EMB for screening the project and determining its category. Section 5. Requirements for Securing Environmental Compliance Certificate (ECC) and Certificate of NonCoverage (CNC) 5.1 Documentary Requirements for Proponents ECC processing requirements shall focus on information needed to assess critical environmental impacts of projects. Processing requirements shall be customized based on the project categories. The total maximum processing time reckons from the acceptance of the ECC/CNC application for substantive review up to the issuance of the decision 5.2 Forms and Contents of EIA Study Reports and Other Documents Required Under the EIS System

The following are the different forms of EIA study reports and documents required under the EIS System. DENR employees are prohibited from taking part in the preparation of such documents. The DENR/EMB shall limit to a maximum of two (2) official requests (in writing) to the project proponent for additional information, which shall be made within the first 75% of the processing timeframe shown in Section 5.1.1. 5.2.1. Environmental Impact Statement (EIS). The EIS should contain at least the following: a. EIS Executive Summary; b. Project Description; c. Matrix of the scoping agreement identifying critical issues and concerns, as validated by EMB; d. Baseline environmental conditions focusing on the sectors (and resources) most significantly affected by the proposed action; e. Impact assessment focused on significant environmental impacts (in relation to project construction/commissioning, operation and decommissioning), taking into account cumulative impacts; f. Environmental Risk Assessment if determined by EMB as necessary during scoping; g. Environmental Management Program/Plan; h. Supporting documents; including technical/socio-economic data used/generated; certificate of zoning viability and municipal land use plan; and proof of consultation with stakeholders; i. Proposals for Environmental Monitoring and Guarantee Funds including justification of amount, when required; j. Accountability statement of EIA consultants and the project proponent; and k. Other clearances and documents that may be determined and agreed upon during scoping. 5.2.2. Initial Environmental Examination (IEE) Report IEE Report is similar to an EIS, but with reduced details of data and depth of assessment and discussion. It may be customized for different types of projects under Category B. The EMB shall coordinate with relevant government agencies and the private sector to customize and update IEE Checklists to further streamline ECC processing, especially for small and medium enterprises. 5.2.3. Programmatic Environmental Impact Statement (PEIS) The PEIS shall contain the following: a. Executive Summary; b. Project Description; c. Summary matrix of scoping agreements as validated by EMB; d. [-co-profiling of air, land, water, and relevant people aspects; e. Environmental carrying capacity analysis; f. Environmental Risk Assessment (if found necessary during scoping); g. Environmental Management Plan to include allocation scheme for discharge of pollutants; criteria for acceptance of locators, environmental management guidebook for locators, and environmental liability scheme; h. Duties of the Environmental Management Unit to be created; i. Proposals for Environmental Monitoring & Guarantee Funds and terms of reference for the Multi-partite Monitoring Team, and j. Other supporting documents and clearances that may be agreed during the scoping. 5.2.4. Programmatic Environmental Report and Management Plan (PEPRMP).

Performance

The PEPRMP shall contain the following: a. Project Description of the co-located projects; b. Documentation of the actual environmental performance based on current/past environmental management measures implemented, and c. An EMP based on an environmental management system framework and standard set by EMB. 5.2.5. Environmental Management Plan

Performance

Report

d. Detailed comparative, description of the proposed project expansion and/or process modification with corresponding material and energy balances in the case of process industries, e. EMP based on an environmental management system framework and standard set by EMB. 5.2.6. Project Description (PD)

and

The PD shall be guided by the definition of terms and shall contain the following:

The EPRMP shall contain the following: a. Project Description; b. Baseline conditions for critical environmental parameters; c. Documentation of the environmental performance based on the current/past environmental management measures implemented; d. Detailed comparative, description of the proposed project expansion and/or process modification with corresponding material and energy balances in the case of process industries, e. EMP based on an environmental management system framework and standard set by EMB.

a. Description of the project; b. Location and area covered; c. Capitalization and manpower requirement; d. For process industries, a listing of raw materials to be used, description of the process or manufacturing technology, type and volume of products and discharges: e. For Category C projects, a detailed description on how environmental efficiency and overall performance improvement will be attained, or how an existing environmental problem will be effectively solved or mitigated by the project, and f. A detailed location map of the impacted site showing relevant features (e.g. slope, topography, human settlements). g. Timelines for construction and commissioning .

5.2.6. Project Description (PD) The PD shall be guided by the definition of terms and shall contain the following: and update IEE Checklists to further streamline ECC processing, especially for small and medium enterprises. 5.2.3. Programmatic Environmental Impact Statement (PEIS) The PEIS shall contain the following: a. Executive Summary; b. Project Description; c. Summary matrix of scoping agreements as validated by EMB; d. [-co-profiling of air, land, water, and relevant people aspects; e. Environmental carrying capacity analysis; f. Environmental Risk Assessment (if found necessary during scoping); g. Environmental Management Plan to include allocation scheme for discharge of pollutants; criteria for acceptance of locators, environmental management guidebook for locators, and environmental liability scheme; h. Duties of the Environmental Management Unit to be created; i. Proposals for Environmental Monitoring & Guarantee Funds and terms of reference for the Multi-partite Monitoring Team, and j. Other supporting documents and clearances that may be agreed during the scoping. 5.2.4. Programmatic Environmental Performance Report and Management Plan (PEPRMP). The PEPRMP shall contain the following: a. Project Description of the co-located projects; b. Documentation of the actual environmental performance based on current/past environmental management measures implemented, and c. An EMP based on the environmental management system framework and standard set by EMB. 5.2.5. Environmental Performance Management Plan (EPRMP)

Report

and

The EPRMP shall contain the following: a. Project Description; b. Baseline conditions for critical environmental parameters; c. Documentation of the environmental performance based on the current/past environmental management measures implemented;

5.2.7. EMS-based EMP. The EMS-based EMP is an option that proponents may undertake in lieu of the EPRMP for single projects applying for ECC under Category A-3 and B-3. 5.3 Public Hearing 1 Consultation Requirements For projects under Category A-1, the conduct of public hearing as part of the EIS review is mandatory unless otherwise determined by EMB. For all other undertakings, a public hearing is not mandatory unless specifically required by EMB. Proponents should initiate - public consultations early in order to ensure that environmentally relevant concerns of stakeholders are taken into consideration in the EIA study and the formulation of the management plan, All public consultations and public hearings conducted during the EIA process are to be documented. The public hearing/ consultation Process report shall be validated by the EMB/EMB RD and shall constitute part of the records of the EIA process. 5.4 Documentation Requirements for DENR-EMB and EIA Reviewers The EMB Central Office as well as the EMB Regional Offices shall document the proceedings of the ECC application process and shall set up and maintain relevant information management systems. The documentation shall, at a minimum, include the following: 5.4.1. Review Process Report This is to be prepared by the EMB Central or EMB RO. It is to be forwarded to the DENR Secretary or RD as reference for decision-making and maintained as part of the records on the ECC application. The report should contain at least the following: a. Summary of the environmental impacts of the undertaking, along with the proposed mitigation and enhancement measures; b. Key issues/concerns and the proponent's response to these; c. Documentation of compliance with procedural requirements; d. Acceptability of proposed EMP including the corresponding cost of mitigation, EGF and EMF if required; e. Key bases for the decision on the ECC application. 5.4.2. EIARC Report This report, to be prepared by the EIA Review Committee, forms part of the EIS review documentation. The EIARC Report shall be written by the designated member of the EIARC and

signed by all the members within five days after the final review meeting. If an EIARC member dissents, he or she must submit a memorandum to the EMB Director through the EIARC Chairman his or her reasons for dissenting. At a minimum the EIARC report should contain; a. Detailed assessment of the proposed mitigation and enhancement measures for the identified environmental impacts and risks; b. Description of residual or unavoidable environmental impacts despite proposed mitigation measures; c. Documentation of compliance with technical/substantive review criteria; d. Key issues/concerns and the proponent's response to these, including social acceptability measures; e. Assessment of the proposed EMP (including risk reduction/management plan) and amounts proposed for the Environmental Guarantee Fund and the Environmental Monitoring Fund, and f. Recommended decision regarding the ECC application as well as proposed ECC conditions. 5.4.3. Decision Document This is an official letter regarding the decision on the application. It may be in the form of an Environmental Compliance Certificate or a Denial Letter. The ECC shall contain the scope and limitations of the approved activities, as well as conditions to ensure compliance with the Environmental Management Plan. The ECC shall also specify the setting up of an EMF and EGF, if applicable. No ECC shall be released until the proponent has settled all liabilities, fines and other obligations with DENR. A Denial Letter on the other hand shall specify the bases for the decision. The ECC or Denial Letter shall be issued directly to the project proponent or its duly authorized representative, and receipt of the letter shall be properly documented. The ECC of a project not implemented within five years from its date of issuance is deemed expired. The Proponent shall have to apply for a new ECC if it intends to pursue the project. The reckoning date of project implementation is the date of ground breaking, based on the proponent's work plan as submitted to the EMB. Section 6. Appeal Any party aggrieved by the final decision on the ECC / CNC applications may, within 15 days from receipt of such decision, file an appeal on the following grounds: a. Grave abuse of discretion on the part of the deciding authority, or b. Serious errors in the review findings. The DENR may adopt alternative conflict/dispute resolution procedures as a means to settle grievances between proponents and aggrieved parties to avert unnecessary legal action. Frivolous appeals shall not be countenanced. The proponent or any stakeholder may file an appeal to the following: Deciding Authority Where to file the appeal EMB Regional Office Director Office of the EMB Director EMB Central Office Office of the DENR Secretary DENR Secretary Office of the President Section 7. The EIA Process in Relation to the Project Planning Cycle Proponents are directed under AO 42 to conduct simultaneously the environmental impact study and the project planning or feasibility study. EMB may validate whether or not the EIS was integrated with project planning by requiring relevant documentary proofs, such as the terms of reference for the feasibility study and copies of the feasibility study report.

The EMB shall study the potential application of EIA to policybased undertakings as a further step toward integrating and streamlining the EIS system. Section 8. EIS System Procedures 8.1 Manual of Procedures 8.1.1. The procedures to enable the processing of ECCICNC applications within the timeframes, specified in AO 42 shall be prescribed in a Procedural Manual to be issued by the EMB Central Office within ninety (90) days from the date of this Order. 8.1.2. The Manual of Procedures shall be updated as the need arises to continually shorten the review and approval/denial timeframes where feasible. Formulation of said procedures shall conform to the following guidelines; 8.2 Processing Timeframe 8.2.1. If no decision is made within the specified timeframe, the ECC/CNC application is deemed automatically approved and the approving authority shall issue the ECC or CNC within five (5) working days after the prescribed processing timeframe has lapsed. However, the EMB may deny issuance of ECC if the proponent fails to submit required additional information critical to deciding on the ECC/CNC application, despite written request from EMB and despite an adequate period for the proponent to comply with the said requirement; 8.2.2. In cases where ECC issuance cannot be decided due to the proponent's inability to submit required additional information within the prescribed period, the EMB shall return the application to the proponent. The project proponent may resubmit its application, including the required additional information, within one (1) year for Category A projects and six (6) months for Category B projects without having to pay processing and other fees. Otherwise, the matter shall be treated as a new application. 8.2.3. In cases where EMB and the project proponent have exhausted all reasonable efforts to generate the information needed for deciding on the ECC/CNC application, the responsible authority (Secretary or EMB Director/ Regional Director), shall make a decision based on the available information so as to comply with the prescribed timeframe. The decision shall nonetheless reflect a thorough assessment of impacts taking into consideration (i) the significance of environmental impacts and risks; (ii) the carrying capacity of the environment; (iii) equity issues with respect to use of natural resources, (iv) and the proponent's commitment, to institute effective environmental management measures. 8.3 Amending an ECC Requirements for processing ECC amendments shall depend on the nature of the request but shall be focused on the information necessary to assess the environmental impact of such changes. 8.3.1. Requests for minor changes to ECCs such as extension of deadlines for submission of post-ECC requirements shall be decided upon by the endorsing authority. 8.3.2. Requests for major changes to ECCs shall be decided upon by the deciding authority. 8.3.3. For ECCs issued pursuant to an IEE or IEE checklist, the processing of the amendment application shall not exceed thirty (30) working days; and for ECCs issued pursuant to an EIS, the processing shall not exceed sixty (60) working days. Provisions on automatic approval related to prescribed timeframes under AO 42 shall also apply for the processing of applications to amend ECCs. Section 9. Monitoring of Projects with ECCs Post ECC monitoring of projects shall follow these guidelines. Other details on requirements for monitoring of projects with ECCs shall be stipulated in a procedural manual to be formulated by EMB.

9.1 Multipartite Monitoring Team For projects under Category A, a multi-partite monitoring team (MMT) shall be formed immediately after the issuance of an ECC. Proponents required to establish an MMT shall put up an Environmental Monitoring Fund (EMF) not later than the initial construction phase of the project. The MMT shall be composed of representatives of the proponent and of stakeholder groups, including representatives from concerned LGU's, locally accredited NGOs/POs, the community, concerned EMB Regional Office, relevant government agencies, and other sectors that may be identified during the negotiations. The team shall be tasked to undertake monitoring of compliance with ECC conditions as well as the EMP. The MMT shall submit a semi-annual monitoring report within January and July of each year. The EMB shall formulate guidelines for operationalizing areabased or cluster-based MMT. The Bureau may also develop guidelines for delegating, monitoring responsibilities to other relevant government agencies as may be deemed necessary. For projects whose significant environmental impacts do not persist after the construction phase or whose impacts could be addressed through other regulatory means or through the mandates of other government agencies, the operations of MMT may be terminated immediately after construction or after a reasonable period during implementation. 9.2 Self-monitoring and Third Party Audit The proponent shall also conduct regular self-monitoring of specific parameters indicated in the EMP through its environmental unit. The proponent's environmental unit shall submit a semi-annual monitoring report within January and July of each year. For projects with ECCs issued based on a PEPRMP, EPRMP, or an EMS-based EMP, a third party audit may be undertaken by a qualified environmental or EMS auditor upon the initiative of the proponent and in lieu of forming an MMT. The said proponent shall submit to EMB a copy of the audit findings and shall be held accountable for the veracity of the report. The EMB may opt to validate the said report. 9.3 Environmental Guarantee Fund An Environmental Guarantee Fund (EGF) shall be established for all co-located or single projects that have been determined by DENR to pose a significant public risk or where the project requires rehabilitation or restoration. An EGF Committee shall be formed to manage the fund. It shall be composed of representatives from the EMB Central Office, EMB Regional Office, affected communities, concerned LGUs, and relevant government agencies identified by EMB. An integrated MOA on the MMT-EMF-EGF shall be entered into among the EMB Central Office, EMB Regional Office, the proponent, and representatives of concerned stakeholders. 9.4 Abandonment For projects that shall no longer be pursued, the proponent should inform EMB to relieve the former from the requirement for continued compliance with the ECC conditions. For projects that have already commenced implementation, an abandonment/decommissioning plan shall be submitted for approval by EMB at least six (6) months before the planned abandonment/decommissioning. The implementation of the plan shall be verified by EMB. ARTICLE Ill STRENGTHENING PHILIPPINE EIS SYSTEM

THE

IMPLEMENTATION

Section 10. Coordination with other Agencies and other Organizations

OF

THE

Government

The DENR-EMB shall conduct regular consultations with DTI and other pertinent government agencies, affected industry groups and other stakeholders on continually streamlining the processing of ECC applications and post ECC implementation to fulfill the policy and objectives of this administrative order. The President shall be apprised of the issues raised as well as the actions taken by DENR to address these issues whenever necessary. Section 11. Information Systems Improvement The information system on the EIS System implementation shall be improved for the effective dissemination of information to the public. The information system shall include regular updating of the status of ECC applications through a website and through other means. Section 12. Accreditation System To enhance the quality of the EIS submitted to the DENR/EMB, the EMB shall establish an accreditation system for individual professionals, academic and professional organizations that can be tapped to train professionals in conducting EIA using training modules approved by EMB. The EMB shall also work with DTI-BPS for an accreditation system for environmental and EMS auditors, consistent with provisions of DAO 2003-14 on the Philippine Environmental Partnership Program. Section 13. Creation of an HAM Division and Strengthening of Review and Monitoring Capability In order to effectively implement the provisions of this administrative order, the current EIA ad hoc division at the EMB Central Office and the EMB Regional Offices that are primarily in-charge of processing ECC applications and postECC monitoring shall be converted to a full-pledged Environmental Impact Assessment and Management Division (EIAMD). The Division shall have the following structure and functions: 13.1 The EIA Evaluation Section shall be in charge of screening projects for coverage under the EIS System, EIS Scoping, and evaluation of EIS's and IEE's submitted for ECC issuance. It shall have three units responsible, respectively, for screening for coverage, EIS Scoping, and evaluation of ECC applications. The EMB may commission independent professionals, experts from the academe and representatives from relevant government agencies as members of the EIA Review Committee as may be deer 31d necessary. Further, continual improvement of the technical capability of the Staff of the EIA Division shall be undertaken. 13.2 The Impact Monitoring and Validation Section shall be in charge of monitoring compliance to ECC conditions and implementation of the Environmental Management Program (EMP): The unit shall also validate actual impacts as a basis for evaluating environmental performance and effectiveness of the EMP. 13.3 In the EMB Central Office, there shall be a Systems Planning and Management Section. It shall ensure that a continually improving systems-oriented and integrated approach is followed in implementing the Philippine EIS System vis-a-vis national development programs. The section shall have two units responsible for specific systems level concerns: (1) Project Level Systems Planning and Management Unit; and (2) Program and Policy Level Systems Planning and Management Unit. This section shall also be responsible for technical coordination with the EIA Division in the different EMB Regional Offices. The organizational structure of the EMB Central Office is in Annex 1. ARTICLE 1V MISCELLANEOUS PROVISIONS

Section 14. Budget Allocation For the effective implementation of this order, adequate funding should be provided under the annual General Appropriations Act. Per AU 42, the new position items for the EIA Division shall be created out of the existing budget and vacant position items within the government service, which shall be reclassified accordingly. Section 15. Fees All proponents, upon submission of the IEEIEIS and application for amendment, shall pay filing fees and other charges in accordance with prescribed standard costs and fees set by EMB in relation to the implementation of the Philippine EIS System, as shown in Annex 2. The proponent shall shoulder the cost of reviewing the EIS. Section 16. Fines, Penalties And Sanctions The EMB Central Office or Regional Office Directors shall impose penalties upon persons or entities found violating provisions of P.D. 1586, and its Implementing Rules and Regulations. Details of the Fines and Penalty Structure shall be covered by a separate order. The EMB Director or the EMB-RD may issue a Cease and Desist Order (CDO) based on violations under the Philippine EIS System to prevent grave or irreparable damage to the environment. Such CDO shall be effective immediately. An appeal or any motion seeking to lift the CDO shall not stay its effectivity. However, the DENR shall act on such appeal or motion within ten (10) working days from filing. The EMB may publish the identities of firms that are in violation of the EIA Law and its Implementing Rules and Regulations despite repeated Notices of Violation and/or Cease and Desist Orders. Section 17. Transitory Provisions The DENR may extend reprieve to proponents of projects operating without ECC (Categories A-3 and B-3) from penalties specified in PD 1586 upon registration with the EMB Central Office. An Environmental Performance Report and Management Plan (EPRMP) shall be submitted as a requirement for such ECC application within six months from the signing of this Administrative order. During the period that that the Procedural Manual and other necessary guidelines are being prepared, existing guidelines which are consistent with the provisions of this Order shall remain in effect. Adequate resources shall be provided for the formulation of the Procedural Manual and for the effective implementation of this Order. Section 18. Repealing Clause This Order hereby supersedes Department Administrative Order No. 96-37, Department Administrative Order No. 200037, DAO 2000-05 and other related orders, which are inconsistent herewith.

C.A. No. 141 : AN ACT TO AMEND AND COMPILE THE LAWS RELATIVE TO LANDS OF THE PUBLIC DOMAIN TITLE I TITLE AND APPLICATION OF THE ACT, LANDS TO WHICH IT REFERS, AND CLASSIFICATION, DELIMITATION, AND SURVEY - THEREOF FOR CONCESSION CHAPTER I SHORT TITLE OF THE ACT, LANDS TO WHICH IT APPLIES, AND OFFICERS CHARGED WITH ITS EXECUTION

Sec. 2. The provisions of this Act shall apply to the lands of the public domain; but timber and mineral lands shall be governed by special laws and nothing in this Act provided shall be understood or construed to change or modify the administration and disposition of the lands commonly called “friar lands” and those which, being privately owned, have reverted to or become the property of the Commonwealth of the Philippines, which administration and disposition shall be governed by the laws at present in force or which may hereafter be enacted. Sec. 3. The Secretary of Agriculture and Commerce shall be the executive officer charged with carrying out the provisions of this Act through the Director of Lands, who shall act under his immediate control. Sec. 4. Subject to said control, the Director of Lands shall have direct executive control of the survey, classification, lease, sale or any other form of concession or disposition and management of the lands of the public domain, and his decisions as to questions of fact shall be conclusive when approved by the Secretary of Agriculture and Commerce. Sec. 5. The Director of Lands, with the approval of the Secretary of Agriculture and Commerce shall prepare and issue such forms, instructions, rules, and regulations consistent with this Act, as may be necessary and proper to carry into effect the provisions thereof and for the conduct of proceedings arising under such provisions. CHAPTER II CLASSIFICATION, DELIMITATION, AND SURVEY OF LANDS OF THE PUBLIC DOMAIN, FOR THE CONCESSION THEREOF Sec. 6. The President, upon the recommendation of the Secretary of Agriculture and Commerce, shall from time to time classify the lands of the public domain into (a) Alienable or disposable; (b) Timber, and (c) Mineral lands, and may at any time and in a like manner transfer such lands from one class to another, for the purposes of their administration and disposition. Sec. 7. For the purposes of the administration and disposition of alienable or disposable public lands, the President, upon recommendation by the Secretary of Agriculture and Commerce, shall from time to time declare what lands are open to disposition or concession under this Act. Sec. 8. Only those lands shall be declared open to disposition or concession which have been officially delimited and classified and, when practicable, surveyed, and which have not been reserved for public or quasi-public uses, nor appropriated by the Government, nor in any manner become private property, nor those on which a private right authorized and recognized by this Act or any other valid law may be claimed, or which, having been reserved or appropriated, have ceased to be so However, the President may, for reasons of public interest, declare lands of the public domain open to disposition before the same have had their boundaries established or been surveyed, or may, for the same reason, suspend their concession or disposition until they are again declared open to concession or disposition by proclamation duly published or by Act of the National Assembly. Sec. 9. For the purpose of their administration and disposition, the lands of the public domain alienable or open to disposition shall be classified, according to the use or purposes to which such lands are destined, as follows: (a) Agricultural (b) Residential commercial industrial or for similar productive purposes (c) Educational, charitable, or other similar purposes (d) Reservations for town sites and for public and quasi-public uses. The President, upon recommendation by the Secretary of Agriculture and Commerce, shall from time to time make the classifications provided for in this section, and may, at any time and in a similar manner, transfer lands from one class to another.

Sec. 10. The words “alienation, “‘disposition, or “concession” as used in this Act, shall mean any of the methods authorized by this Act for the acquisition, lease, use, or benefit of the lands of the public domain other than timber or mineral lands. TITLE II AGRICULTURAL PUBLIC LANDS CHAPTER III FORMS OF CONCESSION OF AGRICULTURAL LANDS Sec. 11. Public lands suitable for agricultural purposes can be disposed of only as follows, and not otherwise: (1) For homestead settlement (2) By sale (3) By lease (4) By confirmation of imperfect or incomplete titles: (a) By judicial legalization (b) By administrative legalization (free patent). Sec. 12. Any citizen of the Philippines over the age of eighteen years, or the head of a family, who does not own more than twenty-four hectares of land in the Philippines or has not had the benefit of any gratuitous allotment of more than twenty-four hectares of land since the occupation of the Philippines by the United States, may enter a homestead of not exceeding twenty-four hectares of agricultural land of the public domain. Sec. 13. Upon the filing of an application for a homestead, the Director of Lands, if he finds that the application should be approved, shall do so and authorize the applicant to take possession of the land upon the payment of five pesos, Philippine currency, as entry fee. Within six months from and after the date of the approval of the application, the applicant shall begin to work the homestead, otherwise he shall lose his prior right to the land. Sec. 14. No certificate shall be given or patent issued for the land applied for until at least one-fifth of the land has been improved and cultivated. The period within which the land shall be cultivated shall not be less than one or more than five years, from and after the date of the approval of the application. The applicant shall, within the said period, notify the Director of Lands as soon as he is ready to acquire the title. If at the date of such notice, the applicant shall prove to the satisfaction of the Director of Lands, that he has resided continuously for at least one year in the municipality in which the land is located, or in a municipality adjacent to the same, and has cultivated at least one-fifth of the land continuously since the approval of the application, and shall make affidavit that no part of said land has been alienated or encumbered, and that he has complied with all the requirements of this Act, then, upon the payment of five pesos, as final fee, he shall be entitled to a patent. Sec. 15. At the option of the applicant, payment of the fees required in this chapter may be made to the municipal treasurer of the locality, who, in turn, shall forward them to the provincial treasurer. In case of delinquency of the applicant, the Director of Lands may, sixty days after such delinquency has occurred, either cancel the application or grant an extension of time not to exceed one hundred and twenty days for the payment of the sum due. Sec. 16. If at any time before the expiration of the period allowed by law for the making of final proof, it shall be proven to the satisfaction of the Director of Lands, after due notice to the homesteader, that the land entered is under the law not subject to home-stead entry, or that the homesteader has actually changed his residence, or voluntarily abandoned the land for more than six months at any one time during the years of residence and occupation herein required, or has otherwise failed to comply with the requirements of this Act, the Director of Lands may cancel the entry. Sec. 17. Before final proof shall be submitted by any person claiming to have complied with the provisions of this chapter, due notice, as prescribed by the Secretary of Agriculture and Commerce shall be given to the public of his intention to make such proof, stating therein the name and address of the homesteader, the description of the land, with its boundaries and area, the names of the witness by whom it is expected that the necessary facts will be established, and the time and

place at which, and the name of the officer before whom, such proof will be made. Sec. 18. In case the homesteader shall suffer from mental alienation, or shall for any other reason be incapacitated from exercising his rights personally, the person legally representing him may offer and submit the final proof on behalf of such incapacitated person. Sec. 19. Not more than one homestead entry shall be allowed to any one person, and no person to whom a homestead patent has been issued by virtue of the provisions of this Act regardless of the area of his original homestead, may again acquire a homestead; Provided, however, That any previous homesteader who has been issued a patent for less than twenty-four hectares and otherwise qualified to make a homestead entry, may be allowed another homestead which, together with his previous homestead shall not exceed an area of twenty-four hectares. Sec. 20. If at any time after the approval of the application and before the patent is issued, the applicant shall prove to the satisfaction of the Director of Lands that he has complied with all the requirements of the law, but cannot continue with his homestead, through no fault of his own, and there is a bona fide purchaser for the rights and improvements of the applicant on the land, and that the conveyance is not made for purposes of speculation, then the applicant, with the previous approval of the Director of Lands may transfer his rights to the land and improvements to any person legally qualified to apply for a homestead, and immediately after such transfer, the purchaser shall file a homestead application for the land so acquired and shall succeed the original homesteader in his rights and obligations beginning with the date of the approval of said application of the purchaser. Any person who has so transferred his rights may not again apply for a new homestead. Every transfer made without the previous approval of the Director of Lands shall be null and void and shall result in the cancellation of the entry and the refusal of the patent. Sec. 21. Any non-Christian Filipino who has not applied for a home-stead, desiring to live upon or occupy land on any of the reservations set aside for the so-called “non-Christian tribes” may request a permit of occupation for any tract of land of the public domain reserved for said non-Christian tribes under this Act, the area of which shall not exceed four hectares. It shall be an essential condition that the applicant for the permit cultivate and improve the land, and if such cultivation has not been begun within six months from and after the date on which the permit was received, the permit shall be cancelled. The permit shall be for a term of one year. If at the expiration of this term or at any time prior thereto, the holder of the permit shall apply for a homestead under the provisions of this chapter, including the portion for which a permit was granted to him, he shall have the priority, otherwise the land shall be again open to disposition at the expiration of the permit. For each permit the sum of one peso shall be paid. CHAPTER IV SALE Sec. 22. Any citizen of lawful age of the Philippines, and any such citizen not of lawful age who is a head of a family, and any corporation or association of which at least sixty per centum of the capital stock or of any interest in said capital stock belongs wholly to citizens of the Philippines, and which is organized and constituted under the laws of Philippines, and corporate bodies organized in the Philippines authorized under their charters to do so; may purchase any tract of public agricultural land disposable under this Act, not to exceed one hundred and forty-four hectares in the case of an individual and one thousand and twenty-four hectares in that of a corporation or association, by proceeding as prescribed in this chapter: Provided, That partnerships shall be entitled to purchase not to exceed one hundred and forty-four hectares for each member thereof. But the total area so purchased shall in no case exceed the one thousand and twenty-four hectares authorized in this section for associations and corporations.

Sec. 23. No person, corporation, association, or partnership other than those mentioned in the last preceding section may acquire or own agricultural public land or land of any other denomination or classification, which is at the time or was originally, really or presumptively, of the public domain, or any permanent improvement thereon, or any real right on such land and improvement: Provided, however, That persons, corporations, associations or partnerships which, at the date upon which the Philippine Constitution took effect, held agricultural public lands or land of any other denomination, that belonged originally, really or presumptively, to the public domain, or permanent improvements on such lands, or a real right upon such lands and Constitution took improvements, having acquired the same under the laws and regulations in force at the date of such acquisition, shall be authorized to continue holding the same as if such persons, corporations, associations, or partnerships were qualified under the last preceding section; but they shall not encumber, convey, or alienate the same to persons, corporations, associations, or partnerships not included in section twenty-two of this Act, except by reason of hereditary succession, duly legalized and acknowledged by competent courts. Sec. 24. Lands sold under the provisions of this chapter must be appraised in accordance with section one hundred and sixteen of this Act. The Director of Lands shall announce the sale thereof by publishing the proper notice once a week for six consecutive weeks in the Official Gazette, and in two newspapers one published in Manila and the other published in the municipality or in the province where the lands are located, or in a neighboring province, and the same notice shall be posted on the bulletin board of the Bureau Of Lands in Manila, and in the most conspicuous place in the provincial building and the municipal building of the province and municipality, respectively, where the land is located, and, if practicable, on the land itself; but if the value of the land does not exceed two hundred and forty pesos, the publication in the Official Gazette and newspapers may be omitted. The notices shall be published one in English and the other in Spanish or in the local dialect, and shall fix a date not earlier than sixty days after the date of the notice upon which the land will be awarded to the highest bidder, or public bids will be called for, or other action will be taken as provided in this chapter. Sec. 25. Public agricultural lands which are not located within ten (10) kilometers from the boundaries of the city proper in chartered cities or within five (5) kilometers from the municipal hall or town occupants plaza of any municipality may be sold to actual occupants who do not own any parcel of land or whose total land holdings do not exceed five hectares and who comply with the minimum requirements of Commonwealth Act numbered one hundred forty-one, as amended, and who have resided on the land applied for at least two years prior to the date of the application. All bids must be sealed and addressed to the Director of Lands and must have enclosed therewith cash or certified check, treasury warrant, or post-office money order payable to the order of the Director of Lands for ten per centum of the amount of the bid, which amount shall be retained in case the bid is accepted as part payment of the purchase price: Provided, That no bid shall be considered the amount of which is less than the appraised value of the land. In addition to existing publication requirements in section twenty-four of Commonwealth Act Numbered one hundred forty-one, as amended, notices and of applications shall be posted for a period of not less than thirty days in at least three conspicuous places in the municipality where the parcel of land is located, one of which shall be at the municipal building, and other, in the barrio council building of the barrio where the land is located. Sec. 26. Upon the opening of the bids, the land shall be awarded to the highest bidder. If there are two or more equal bids which are higher than the others, and one of such equal bids is that of the applicant, his bid shall be accepted. If, however, the bid of the applicant is not one of such equal and higher bids, the Director of Lands shall at once submit the land for public bidding, and to the person making the highest

bid on such public auction the land shall be awarded. In any case, the applicant shall always have the option of raising his bid to equal that of the highest bidder, and in this case the land shall be awarded to him. No bid received at such public auction shall be finally accepted until the bidder shall have deposited ten per centum of his bid, as required in Section twenty-five of this Act. In case none of the tracts of land that are offered for sale or the purchase of which has been applied for, has an area in excess of twenty-four hectares, the Director of Lands may delegate to the District Land Officer concerned the power of receiving bids, holding the auction, and proceeding in accordance with the provisions of this Act, but the District Land Officer shall submit his recommendation to the Director of Lands, for the final decision of the latter in the case. The District Land Officer shall accept and process any application for the purchase of public lands not exceeding five hectares subject to the approval of the Director of Lands within sixty days after receipt of the recommendation of said District Land Officer. Sec. 27. The purchase price shall be paid as follows: The balance of the purchase price after deducting the amount paid at the time of submitting the bid, may be paid in full upon the making of the award, or in not more than ten equal annual installments from the date of the award. Sec. 28. The purchaser shall have not less than one-fifth of the land broken and cultivated within five years after the date of the award; and before any patent is issued, the purchaser must show of occupancy, cultivation, and improvement of at least one-fifth of the land applied for until the date on which final payment is made: Provided, however, That in case land purchased is to be devoted to pasture, it shall be sufficient compliance with this condition if the purchaser shall graze on the land as many heads of his cattle as will occupy at least one-half of the entire area at the rate of one head per hectare. Sec. 29. After title has been granted, the purchaser may not, within a period of ten years from such cultivation or grant, convey or encumber or dispose said lands or rights thereon to any person, corporation or association, without prejudice to any right or interest of the Government in the land: Provided, That any sale and encumbrance made in violation of the provisions of this section, shall be null and void and shall produce the effect of annulling the acquisition and reverting the property and all rights thereto to the State, and all payments on the purchase price theretofore made to the Government shall be forfeited. Sec. 30. If at any time after the date of the award and before the issuance of patent, it is proved to the satisfaction of the Director of Lands, after due notice to the purchaser, that the purchaser has voluntarily abandoned the land for more than one year at any one time, or has otherwise failed to comply with the requirements of the law, then the land shall revert to the State, and all prior payments made by the purchaser and all improvements existing on the land shall be forfeited. Sec. 31. No person, corporation, association, or partnership shall be permitted, after the approval of this Act, to acquire the title to or possess as owner any lands of the public domain if such lands, added to other lands belonging to such person, corporation, association, or partnership shall give a total area greater than area the acquisition of which by purchase is authorized under this Act. Any excess in area over this maximum and all right, title, interest, claim or action held by any person, corporation, association, or partnership resulting directly or indirectly in such excess shall revert to the State. This section shall, however, not be construed to prohibit any person, corporation, association, or partnership authorized by this Act to require lands of the public domain from making loans upon real necessary for the recovery of such loans; but in this case, as soon as the excess above referred to occurs, such person, corporation, association, or partnership shall dispose of such lands within five years, for the purpose of removing the excess mentioned. Upon the land in excess of the limit there shall be paid, so long as the same is not disposed of, for the first year a surtax of fifty per centum additional to the ordinary tax to which such property shall be subject, and for each succeeding year fifty per centum shall

be added to the last preceding annual tax rate, until the property shall have been disposed of. The person, corporation, association, or partnership owning the land in excess of the limit established by this Act shall determine the portion of land to be segregated. At the request of Secretary of Agriculture and Commerce, the Solicitor-General or the officer acting in his stead shall institute the necessary proceedings in the proper court for the purpose of determining the excess portion to be segregated, as well as the disposal of such portion in the exclusive interest of the Government. Sec. 32. This chapter shall be held to authorize only one purchase of the maximum amount of land hereunder by the same person, corporation, association, or partnership; and no corporation, association, or partnership, any member of which shall have received the benefits of this chapter or of the next following chapter, either as an individual or as a member of any other corporation, association, or partnership, shall purchase any other lands of the public domain under this chapter. But any purchaser of public land, after having made the last payment upon and cultivated at least one-fifth of the land purchased, if the same shall be less than the maximum allowed by this Act, may purchase successively additional agricultural public land adjacent to or not distant from the land first purchased, until the total area of such purchases shall reach the maximum established in this chapter: Provided, That in making such additional purchase or purchases, the same conditions shall be complied with as prescribed by this Act for the first purchase. CHAPTER V LEASE Sec. 33. Any citizen of lawful age of the Philippines, and any corporation or association of which at least sixty per centum of the capital stock or of any interest in said capital stock belongs wholly to citizens of the Philippines, and which is organized and constituted under the laws of the Philippines, may lease any tract of agricultural public land available for lease under the provisions of this Act, not exceeding a total of one thousand and twenty-four hectares. If the land leased is adapted to and be devoted for grazing purposes, an area not exceeding two thousand hectares may be granted. No member, stockholder, of officer, representative, attorney, agent, employee or bondholder of any corporation or association holding or controlling agricultural public land shall apply, directly or indirectly, for agricultural public land except under the homestead and free patent provisions of this Act: Provided, That no lease shall be permitted to interfere with any prior claim by settlement or occupation, until the consent of the occupant or settler is first had, or until such claim shall be legally extinguished, and no person, corporation, or association shall be permitted to lease lands here-under which are not reasonably necessary to carry on his business in case of an individual, or the business for which it was lawfully created and which it may lawfully pursue in the Philippines, if an association or corporation. Sec. 34. A notice of the date and place of the auction of the right to lease the land shall be published and announced in the same manner as that prescribed for the publication and announcement of the notice of sale, in section twenty-four of this Act. Sec. 35. All bids must be sealed and addressed to the Director of Lands and must have enclosed therewith cash or a certified check, Treasury warrant, or post-office money order payable to the order of the Director of Lands, for a sum equivalent to the rental for at least, the first three months of the lease: Provided, That no bid shall be considered in which the proposed annual rental is less than three per centum of the value of the land according to the appraisal made in conformity with section one hundred and sixteen of this Act. Sec. 36. The auction of the right to lease the land shall be conducted under the same procedure as that prescribed for the auction sale of agricultural lands as described in section twenty-six of this Act: Provided, That no bid shall be accepted until the bidder shall have deposited the rental for at least the first three months of the lease.

Sec. 37. The annual rental of the land leased shall not be less than three per centum of the value of the land, according to the appraisal and reappraisal made in accordance with section one hundred sixteen of this Act; except for lands reclaimed by the Government, which shall not be less than four per centum of the appraised and reappraised value of the land: Provided, That one-fourth of the annual rental of these lands reclaimed prior to the approval of this Act shall accrue to the construction and improvement portion of the Portworks Funds: And provided, further, That the annual rental of not less than four per centum of the appraised and reappraised value of the lands reclaimed using the Portworks Fund after the approval of this Act shall all accrue to the construction and improvement portion of the Portworks Fund. But if the land leased is adapted to and be devoted for granting purposes, the annual rental shall be not less than two per centum of-the appraised and reappraised value thereof- Every contract of lease under the provisions of this chapter shall contain a cause to the effect that are appraisal of the land leased shall be made every ten years from the date of the approval of the lease, if the term of the same shall be in excess of ten years. In case the lessee is not agreeable to the reappraisal and prefers to give up his contract of lease, he shall notify the Director of Lands of his desire within the six months next preceding the date on which the reappraisal takes effect, and in case his request is approved, the Director of Lands may, if the lessee should so desire, proceed in accordance with section one hundred of this Act. Sec. 38. Leases shall run for a period of not more than twenty-five years, but may be renewed once for another period of not to exceed twenty-five years, in case the lessee shall have made important improvements which, in the discretion of the Secretary of Agriculture and Commerce justify a renewal. Upon the final expiration of the lease, all buildings and other permanent improvements made by the lessee, his heirs, executors, administrators, successors, or assigns shall become the property of the Government, and the land together with the said improvements shall be disposed of in accordance with the provisions of chapter five of this Act. Sec. 39. It shall be an inherent and essential condition of the lease that the lessee shall have not less than one-third of the land broken and cultivated within five years after the date of the approval of the lease: Provided, however, That in case the land leased is to be devoted to pasture, it shall be sufficient compliance with this condition if the lessee shall graze on the land as many heads of cattle as will occupy at least one-half of the entire area at the rate of one head per hectare. Sec. 40. The lessee shall not assign, encumber, or sublet his rights without the consent of the Secretary of Agriculture and Commerce, and the violation of this condition shall avoid the contract: Provided, That assignment, encumbrance, or subletting for purposes of speculation shall not be permitted in any case: Provided, further, That nothing contained in this section shall be understood or construed to permit the assignment, encumbrance, or subletting of lands leased under this Act, or under any previous Act, to persons, corporations, or associations which under this Act, are not authorized to lease public lands. Sec. 41. The lease of any lands under this chapter shall not confer the right to remove or dispose of any valuable timber except as provided in the regulations of the Bureau of Forestry for cutting timber upon such lands. Nor shall such lease confer the right to remove or dispose of stone, oil, coal, salts. or other minerals, or medicinal mineral waters existing upon the same. The lease as to the part of the land which shall be mineral may be canceled by the Secretary of Agriculture and Commerce, after notice to the lessee, whenever the said part of the land is more valuable for agricultural purposes. The commission of waste or violation of the forestry regulations by the lessee shall work a forfeiture of his last payment of rent and render him liable to immediate dispossession and suit for damage. Sec. 42. After having paid rent for at least the first two years of the lease, and having complied with the requirements prescribed in section thirty nine, the lessee of agricultural

public land with an area than the maximum allowed by law, may lease successively additional agricultural public land adjacent to or near the land originally leased until the totalarea of such leases shall reach the maximum established in this chapter: Provided, That in making such additional lease, the same conditions shall be complied with as prescribed by this Act for the first lease. Sec. 43. During the life of the lease, any lessee who shall have complied with all the conditions thereof and shall have the qualifications required by section twenty-two, shall have the option of purchasing the land leased subject to the restrictions of chapter five of this Act. CHAPTER VI FREE PATENTS Sec. 44. Any natural-born citizen of the Philippines who is not the owner of more than twenty-four hectares and who since July fourth, nineteen hundred and twenty-six or prior thereto, has continuously occupied and cultivated, either by himself or through his predecessors-in-interest, a tract or tracts of agricultural public lands subject to disposition, or who shall have paid the real estate tax thereon while same has not been occupied by any person shall be entitled, under the provisions of this chapter, to have a free patent issued to him for such tract or tracts of such land not to exceed twenty-four hectares. A member of the national cultural minorities who has continuously occupied and cultivated, either by himself or through his predecessors-in-interest, a tract or tracts of land, whether disposable or not since July 4, 1955, shall be entitled to the right granted in the preceding paragraph of this section: Provided, That at the time he files his free patent application he is not the owner of any real property secured or disposable under this provision of the Public Land Law Sec. 45. The President of the Philippines (Prime Minister), upon recommendation of the Secretary of Natural Resources, shall from time to time fix by proclamation the period which applications for Proclamation free patents may be filed in the district, chartered city, of period province, municipality or region specified in such proclamation, and upon the expiration of the period so designated, unless the same be extended by the President (Prime Minister) all the land comprised within such district, chartered city, province, municipality or region subject thereto under the provisions of this chapter may be disposed of as agricultural public land without prejudice to the prior right of the occupant and cultivator to acquire such land under this Act by means other than free patent. The time to be fixed in the entire Archipelago for the filing of applications under this Chapter shall not extend beyond December 31, 1987, except in the provinces of Agusan del Norte, Agusan del Sur, Cotabato, South Cotabato, Bukidnon, Lanao del Norte, Lanao del Sur, Davao del Norte, Davao del Sur, Davao Oriental, Sulu, Mt. Province, Benguet, Kalinga-Apayao, and Ifugao where the President of the Philippines, upon recommendation of the Secretary of Natural Resources, shall determine or fix the time beyond which the filing of applications under this Chapter shall not extend. The period fixed for any district, chartered city, province, or municipality shall begin to run thirty days after the publication of the proclamation in the Official Gazette and if available in one newspaper of general circulation in the city, province or municipality concerned. A certified copy of said proclamation shall be furnished by the Secretary of Natural Resources within 30 days counted from the date of the presidential proclamation to the Director of Lands and to the provincial board, the municipal board or city council and barangay council affected, and copies thereof shall be posted on the bulletin board of the Bureau of Lands at Manila and at conspicuous places in the provincial building and at the municipal building and barangay hall or meeting place. It shall moreover, be announced by government radio whenever available, in each of the barrios of the municipality. Sec. 46. If, after the filing of the application and the investigation, the Director of Lands shall be satisfied of the truth of the allegations contained the application and that the applicant comes within the provisions chapter, he shall cause

a patent to issue to the applicant or his legal successor for the tract so occupied and cultivated, provided its area does not exceed twenty-four hectares: Provided, That no application shall be finally acted upon until notice thereof has been published in the municipality and barrio in which the land is located and adverse claimants have had an opportunity to present their claims. CHAPTER VII JUDICIAL CONFIRMATION OF IMPERFECT OR INCOMPLETE TITLES Sec. 47. The persons specified in the next following section are hereby granted time, not to extend beyond December 31, 1987 within which to take advantage of the benefit of this chapter: Provided, That this extension shall apply only where the area applied for does not exceed 144 hectares. Provided, further, That the several periods of time designated by the President in accordance with section forty-five of this Act shall apply also to the lands comprised in the provisions of this chapter, but this section shall not be construed as prohibiting any of said persons from acting under this chapter at any time prior to the period fixed by the President. Sec. 48. The following-described citizens of the Philippines, occupying lands of the public domain or claiming to own any such lands or an interest therein, but whose titles have not been perfected or completed, may apply to the Court of First Instance of the province where the land is located for confirmation of their claims and the issuance of a certificate of title therefor, under the Land Registration Act , to wit: (a) Those who prior to the transfer of sovereignty from Spain to the prior United States have applied for the purchase, composition or other form of grant of lands of the public domain under the laws and royal decrees then in force and have instituted and prosecuted the proceedings in connection therewith, but have with or without default upon their part, or for any other cause, not received title therefor, if such applicants or grantees and their heirs have occupied and cultivated said lands continuously since the filing of their applications. (b) Those who by themselves or through their predecessors in interest have been in open, continuous, exclusive, and notorious possession and occupation of agricultural lands of the public domain, under a bona fide claim of acquisition or ownership, for at least thirty years immediately preceding the filing of the application for confirmation of title except when prevented by war or force majeure. These shall be conclusively presumed to have performed all the conditions essential to a Government grant and shall be entitled to a certificate of title under the provisions of this chapter. (c) Members of the national cultural minorities who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive and notorious possession and occupation of lands of the public domain suitable to agriculture, whether disposable or not, under a bona fide claim of ownership for at least 30 years shall be entitled to the rights granted in sub-section (b) hereof. Sec. 49. No person claiming title to lands of the public domain not possession of the qualifications specified in the last preceding section may apply for the benefits of this chapter. Sec. 50. Any person or persons, or their legal representatives or successors in right, claiming any lands or interest in lands under the provisions of this chapter, must in every case present an application to the proper Court of First Instance, praying that the validity of the alleged title or claim be inquired into and that a certificate of title be issued to them under the provisions of the Land Registration Act. The application shall conform as nearly as may be in its material allegations to the requirements of an application for registration under the Land Registration Act, and shall be accompanied by a plan of the land and all documents evidencing a right on the part of the applicant to the land claimed. The application shall also state the citizenship of the applicant and shall set forth fully the nature of the claim and when based upon proceeding initiated under Spanish laws, it shall specify as exactly as possible the date and form of

application for purchase composition or other form of grant, the extent of the compliance with the conditions required by the Spanish laws and royal decrees for the acquisition of legal title, and if not fully complied with, the reason for such noncompliance, together with a statement of the length of time such land or any portion thereof has been actually occupied by the claimant or his predecessors in interest; the use made of the land, and the nature of the enclosure, if any. The fees provided to be paid for the registration of lands under the Land Registration Act shall be collected from applicants under this chapter. Sec. 51. Applications for registration under this chapter shall be heard in the Court of First Instance in the same manner and shall be subject to the same procedure as established in the Land Registration Act for other applications, except that a notice of all such applications, together with a plan of the lands claimed, shall be immediately forwarded to the Director of Lands, who may appear as a party in such cases: Provided, That prior to the publication for hearing, all of the papers in said case shall be transmitted papers by the clerk to the Solicitor General or officer acting in his stead, in order that he may, if he deems it advisable for the interests of the Government, investigate all of the facts alleged in the application or otherwise brought to his attention. The Solicitor-General shall return such papers to the clerk as soon as practicable within three months. The final decree of the court shall in every case be the basis for the original certificate of title in favor of the person entitled to the property under the procedure prescribed in section forty-one of the Land Registration Act. Sec. 52. In cadastral proceedings, instead of an application, an answer or claim may be filed with the same effect as in the procedure provided in the last preceding two sections. Sec. 53. It shall be lawful for the Director of Lands, whenever in the opinion of the President the public interests shall require it, to cause to be filed in the proper Court of First Instance, through the Solicitor-General or the officer acting in his stead, a petition against the holder, claimant, possessor, or occupant of any land who shall not have voluntarily come in under the provisions of this chapter or of the Land Registration Act, stating in substance that the title of such holder, claimant, possessor, or occupant is open to discussion; or that the boundaries of any such land which has not been brought into court as aforesaid are open to question; or that it is advisable that the title to such lands be settled and adjudicated, and praying that the title to any such land or the boundaries thereof or the right to occupancy thereof be settled and adjudicated. The judicial proceedings under this section shall be in accordance with the laws on adjudication of title in cadastral proceedings. Sec. 54. If in the hearing of any application arising under this chapter the court shall find that more than one person or claimant has an interest in the land, such conflicting interests shall be adjudicated by the court and decree awarded in favor of the person or persons entitled to the land according to the laws, but if none of said person is entitled to the land, or if the person who might be entitled to the same lacks the qualifications required by this Act for acquiring agricultural land of the public domain, the decision shall be in favor of the Government. Sec. 55. Whenever, in any proceedings under this chapter to secure registration of an incomplete or imperfect claim of title initiated prior to the transfer of sovereignty from Spain to the United States, it shall appear that had such claims been prosecuted to completion under the laws prevailing when instituted, and under the conditions of the grant then contemplated, the conveyance of such land to the applicant would not have been gratuitous, but would have involved payment therefor to the Government, then and in that event the court shall, after decreeing in whom title should vest, further determine the amount to be paid as a condition for the registration of the land. Such judgment shall be certified to the Director of Lands by the clerk of the court for collection of the amount due from the person entitled to conveyance. Upon payment to the Director of Lands of the price specified in the judgment, he shall so certify to the proper Court of First Instance and said court shall forthwith order the registration

of the land in favor of the competent person entitled thereto. If said person shall fail to pay the amount of money required by the decree within a reasonable time fixed in the same, the court shall order the proceeding to stand dismissed and the title to the land shall then be in the State free from any claim of the applicant. Sec. 56. Whenever any judgment of confirmation or other decree of the court under this chapter shall become final, the clerk of the court concerned shall certify that fact to the Director of Lands, with a certified copy of the decree of confirmation or judgment of the court and the plan and technical description of the land involved in the decree or judgment of the court. Sec. 57. No title or right to, or equity in, any lands of the public domain may hereafter be acquired by prescription or by adverse possession or occupancy, or under or by virtue of any law in effect prior to American occupation, except as expressly provided by laws enacted after said occupation of the Philippines by the United States. TITLE III LANDS FOR RESIDENTIAL, COMMERCIAL OR INDUSTRIAL PURPOSES AND OTHER SIMILAR PURPOSES CHAPTER VIII CLASSIFICATION AND CONCESSION OF PUBLIC LANDS SUITABLE FOR RESIDENCE, COMMERCE AND INDUSTRY Sec. 58. Any tract of land of the public domain which, being neither timber nor mineral land, is intended to be used for residential purposes or for commercial, industrial, or other productive purposes other than agricultural, and is open to disposition or concession, shall be disposed of under the provisions of this chapter and not otherwise. Sec. 59. The lands disposable under this title shall be classified as follows: (a) Lands reclaimed by the Government by dredging, filing, or other means; (b) Foreshore; (c) Marshy lands or lands covered with water bordering upon the shores or banks of navigable lakes or rivers; (d) Lands not included in any of the foregoing classes. Sec. 60. Any tract of land comprised under this title may be leased or sold, as the case may be, to any person, corporation, or association authorized to purchase or lease public lands for agricultural purposes. The area of the land so leased or sold shall be such as shall, in the judgment of the Secretary of Agriculture and Natural Resources, be reasonably necessary for the purposes for which such sale or lease is requested, and shall in no case exceed one hundred and forty-four hectares: Provided, however, That this limitation shall not apply to grants, donations, transfers made to a province, municipality or branch or subdivision of the Government for the purposes deemed by said entities conducive to the public interest; but the land so granted donated, or transferred to a province, municipality, or branch or subdivision of the Government shall not be alienated, encumbered, or otherwise disposed of in a manner affecting its title, except when authorized by Congress: Provided, further, That any person, corporation, association or partnership disqualified from purchasing public land for agricultural purposes under the provisions of this Act, may lease land included under this title suitable for industrial or residential purposes, but the lease granted shall only-be valid while such land is used for the purposes referred to. Sec. 61. The lands comprised in classes (a), (b), and (c) of section fifty-nine shall be disposed of to private parties by lease only and not otherwise, as soon as the President, upon recommendation by the Secretary of Agriculture and Commerce shall declare that the same are not necessary for the public service and are open to disposition under this chapter. The lands included in class (d) may be disposed of by sale or lease under the provisions of this Act. Sec. 62. The lands reclaimed by the Government by dredging, filling or otherwise shall be surveyed and may, with the approval of the Secretary of Agriculture and Commerce, be divided by the Director of Lands into lots and blocks, with the necessary streets and alley-ways between them, and said

Director shall give notice to the public by publication in the Official Gazette or by other means, that the lots or blocks not needed for public purposes shall be leased for commercial or industrial or other similar purposes. Sec. 63. Whenever it is decided that lands covered by this chapter are not needed for public purposes, the Director of Lands shall ask the Secretary of Agriculture and Commerce for authority to dispose of the same. Upon receipt of such authority, the Director of Lands shall give notice by public advertisement in the same manner as in the case of leases or sales of agricultural public land, that the Government will lease or sell, as the case may be, the lots or blocks specified in the advertisement, for the purpose stated in the notice and subject to the conditions specified in this chapter. Sec. 64. The leases executed under this chapter by the Secretary of Agriculture and Commerce shall, among other conditions, contain the following: (a) The rental shall not be less than three per centum of the appraised or reappraised value of the land plus one per centum of the appraised or reappraised value of the improvements, except for lands reclaimed by the Government which shall not be less than four per centum of the appraised or reappraised value of the land plus two per centum of the appraised or reappraised value of the improvements thereon: Provided, That twenty-five per centum of the total annual rental on all lands reclaimed prior to the approval of this Act and one per centum of the appraised or reappraised value of improvements shall accrue to the construction and improvement portion of the Portworks Fund: And provided, further, That the annual rental on lands reclaimed using the Portworks Fund together with the fee due on account of the improvement thereon after the effectivity of this Act shall all accrue to the construction and improvement portion of the Portworks Fund. (b) The land rented and the improvements thereon shall be reappraised every ten years if the term of the lease is in excess of that period. (c) The term of the lease shall be as prescribed by section thirty-eight of this Act. (d) The lessee shall construct permanent improvements appropriate for the purpose for which the lease is granted, shall commence the construction thereof within six months from the date of the award of the right to lease the land, and shall complete the said construction within eighteen months from said date. (e) At the expiration of the lease or of any extension of the same, all improvements made by the lessee, his heirs, executors, administrators, successors, or assigns shall become the property of the Government. (f) The regulation of all rates and fees charged to the public; and the annual submission to the Government for approval of all tariffs of such rates and fees. (g) The continuance of the easements of the coast police and other easements reserved by existing law or by any laws hereafter enacted. (h) Subjection to all easements and other rights acquired by the owners of lands bordering upon the foreshore or marshy land. The violation of one or any of the conditions specified in the contract shall give rise to the rescission of said contract. The Secretary of Agriculture and Commerce may, however, subject to such conditions as he may prescribe, waive the rescission arising from a violation of the conditions of subsection (d), or extend the time within which the construction of the improvements shall be commenced and completed. Sec. 65. The sale of the lands comprised in classes (c) and (d) of section fifty-nine shall, among others, comprise the following conditions: (a) The purchaser shall make improvements of a permanent character appropriate for the purpose for which the land is purchased, shall commence work thereon within six months from the receipt of the order of award, and shall complete the construction of said improvements within eighteen months from the date of such award; otherwise the Secretary of Agriculture and Natural Resources may rescind the contract.

(b) The purchase price shall be paid in cash or in equal annual installments, not to exceed ten. The contract of sale may contain other conditions not inconsistent with the provisions of this Act. Sec. 66. The kind of improvements to be made by the lessee or the purchaser, and the plans thereof, shall be subject to the approval of the Secretary of Public Works and Communications, in case they are constructions or improvements which if by the Government, would properly have to be executed under the supervision of the Bureau of Public Works. Sec. 67. The lease or sale shall be made through oral bidding; and adjudication shall be made to the highest bidder. However, where an applicant has made improvements on the land by virtue of a permit issued to him by competent authority, the sale or lease shall be made by sealed bidding as prescribed in section twenty-six of this Act, the provisions of which shall be applied wherever applicable. If all or part of the lots remain unleased or unsold, the Director of Lands shall from time to time announce in the Official Gazette or in any other newspapers of general circulation, the lease or sale of those lots, if necessary Sec. 68. The Secretary of Agricultural and Commerce may grant to qualified persons temporary permission, upon payment of a reasonable charge, for the use of any portion of the lands covered by this chapter for any lawful private purpose, subject to revocation at any time when, in his judgment, the public interest shall require it. TITLE IV LANDS FOR EDUCATIONAL, CHARITABLE, AND OTHER SIMILAR PURPOSES CHAPTER IX CONCESSION OF LANDS FOR EDUCATIONAL, CHARITABLE, AND OTHER SIMILAR PURPOSES Sec. 69. Whenever any province, municipality, or other branch or subdivision of the Government shall need any portion of the land of the public domain open to concession for educational, charitable or other similar purposes, the President, upon recommendation by the Secretary of Agriculture and Commerce, may execute contracts in favor of the same. in the form of donation, sale, lease, exchange, or any other form, under terms and conditions to be inserted in the contract; but land so granted shall in no case be encumbered or alienated, except when the public service requires their being leased or exchanged, with the approval of the President, for other lands belonging to private parties, or if the National Assembly disposes otherwise. Sec. 70. Any tract of public land of the class covered by this title may be sold or leased for the purpose of founding a cemetery, church, college, school, university, or other institutions for educational, charitable or philanthropical purposes or scientific research, the area to be such as may actually and reasonably be necessary to carry out such purpose, but not to exceed ninety-six hectares in any case. The sale or lease shall be made subject to the same conditions as required for the sale and lease of agricultural public land, but the Secretary of Agriculture and Commerce may waive the conditions requiring cultivation. The Secretary of Agriculture and Commerce, if conveyance he sees fit, may order the sale to be made without public auction, at a price to be fixed by said Secretary, or the lease to be granted without auction, at a rental to be fixed by him. In either case it shall be a condition that the purchaser or lessee or their successors or assigns shall not sell transfer, encumber or lease the land for the purposes of speculation or use it for any purpose other than that contemplated in the application, and that the violation of this condition shall give rise to the immediate rescission of the sale or lease, as the case may be, and to the forfeiture to the Government of all existing improvements: Provided, That it shall in no case be sublet, encumbered or resold under the conditions above set forth except with the approval of the Secretary of Agriculture and Commerce. TITLE V RESERVATIONS

CHAPTER X TOWN SITE RESERVATIONS Sec. 71. Whenever it shall be considered to be in the public interest to found a new town. The Secretary of Agriculture and Commerce shall direct the Director of Lands to have a survey made by his Bureau of the exterior boundaries of the site on which such town is to be established, and upon the completion of the survey he shall send the same to said Secretary, with his recommendations. Sec. 72. The Secretary of Agriculture and Commerce, if he approves the recommendations of the Director of Lands, shall submit the matter to the President to the end that the latter may issue a proclamation reserving the land surveyed, or such part thereof as he may deem proper, as a town site, and a certified copy of such proclamation shall be sent to the Director of Lands and another to the register of deeds of the province in which the surveyed land lies. Sec. 73. It shall then be the duty of the Director of Lands, after having recorded the proclamation of the President and the survey accompanying the same, and having completed the legal proceedings prescribed in chapter thirteen of this Act, to direct a subdivision in accordance with the instructions of the Secretary of Agriculture and Commerce, if there shall be such instructions, and if there shall not be any, then in the manner which may to the Director of Lands seem best adapted to the convenience and interest of the public and the residents of the future town. Sec. 74. The plat of the subdivision shall designate certain lots for commercial and industrial uses and the remainder as residence lots, and shall also reserve and note the lots owned by private individuals as evidenced by record titles, or possessed or claimed by them as private property. Such lots, whether public or private, shall be numbered upon a general plan or system. The plat prepared by the Director of Lands shall be submitted to the Secretary of Agriculture and Commerce for consideration, modification, amendment, or approval. Sec. 75. Unless the necessary reservations are made in the proclamation of the President, the Director of Lands, with the approval of the Secretary of Agriculture and Commerce, shall reserve out of the land by him to be subdivided lots of sufficient size and convenient situation for public use, as well as the necessary avenues, streets, alleyways, parks, and squares. The avenues, streets, alleys, parks, plazas, and lots shall be laid out on the plat as though the lands owned or claimed by private persons were part of the public domain and part of the reservation, with a view to the possible subsequent purchase or condemnation thereof, if deemed necessary by the proper authorities. Sec.76. At any time after the subdivision has been made, the President may, in case the public interest requires it, reserve for public purposes any lot or lots of the land so reserved and not disposed of. Sec. 77. If, in order to carry out the provisions of this chapter, it shall be necessary to condemn private lands within the limits of the new town, the President shall direct the SolicitorGeneral or officer acting in his stead to at once begin proceedings for condemnation, in accordance with the provisions of existing law. Sec. 78. When the plat of subdivision has been finally approved by the Secretary of Agriculture and Commerce, the Director of Lands shall record the same in the records of his office and shall forward a certified copy of such record to the register of deeds of the province in which the land lies, to be by such register recorded in the records of his office Sec. 79. All lots, except those claimed by or belonging to private parties and those reserved for parks, buildings, and other public uses, shall be sold, after due notice, at public auction to the highest bidder, after the approval and recording of the plat of subdivision as above provided, but no bid shall be accepted that does not equal at least two-thirds of the appraised value, nor shall bids be accepted from persons, corporations, associations, or partnerships not authorized to purchase public lands for commercial, residential or industrial purposes under the provisions of this Act. The provisions of sections twenty-six and sixty-five of this Act shall be observed

in so far as they are applicable. Lots for which satisfactory bids have not been received shall be again offered for sale, under the same conditions as the first time, and if they then remain unsold, the Director of Lands shall be authorized to sell them at private sale for not less than two-thirds of their appraised value. Sec. 80. All funds derived from the sale of lots shall be covered into the Philippine Treasury as part of the general funds. Sec. 81. Not more than two residence lots and two lots for commercial and industrial uses in any one town site shall be sold to any one person, corporation, or association without the specific approval of the Secretary of Agriculture and Commerce. Sec. 82. The Assembly shall have the power at any time to modify, alter, rescind, repeal, annul, and cancel, with or without conditions, limitation, exceptions, or reservations, all and any dispositions made by the executive branch of the Philippine Government by virtue of this chapter, and the exercise of this power shall be understood as reserved in all cases, as an inherent condition thereof. CHAPTER XI RESERVATIONS FOR PUBLIC AND SEMI-PUBLIC PURPOSES Sec. 83. Upon the recommendation of the Secretary of Agriculture and Commerce, the President may designate by proclamation any tract or tracts of land of the public domain as reservations for the use of the Commonwealth of the Philippines or of any of its branches, or of the inhabitants thereof, in accordance with regulations prescribed for this purpose, or for quasi-public uses or purposes when the public interest requires it, including reservations for highways, rights of way for railroads, hydraulic power sites, irrigation systems, communal pastures or leguas comunales, public parks, public quarries, public fishponds, workingmen’s village and other improvements for the public benefit. Sec. 84. Upon recommendation of the Secretary of Agriculture and Commerce, the President, may by proclamation, designate any tract or tracts of the public domain for the exclusive use of the non-Christian Filipinos, including in the reservation, in so far as practicable, the lands used or possessed by them, and granting to each member not already the owner, by title or gratuitous patent, of four or more hectares of land, the use and benefit only of a tract of land not to exceed four hectares for each male member over eighteen years of age or the head of a family. As soon as the Secretary of the Interior shall certify that the majority of the non-Christian inhabitants of any given reservation have advanced sufficiently in civilization, then the President may order that the lands of the public domain within such reservation be granted under the general provisions of this Act to the said inhabitants, and the subdivision and distribution of said lands as above provided shall be taken into consideration in the final disposition of the same. But any nonChristian inhabitant may at any time apply for the general benefits of this Act provided the Secretary of Agriculture and Commerce is satisfied that such inhabitant is qualified to take advantage of the provisions of the same: Provided, That all grants, deeds, patents and other instruments of conveyance of land or purporting to convey or transfer rights of property, privileges, or easements appertaining to or growing out of lands, granted by sultans, datus, or other chiefs of the socalled non-Christian tribes, without the authority of the Spanish Government while the Philippines were under the sovereignty of Spain, or without the consent of the United States Government or of the Philippine Government since the sovereignty over the Archipelago was transferred from Spain to the United States, and all deeds and other documents executed or issued or based upon the deeds, patents, and documents mentioned, are hereby declared to be illegal, void, and of no effect. Sec. 85. Upon recommendation by the Secretary of Agriculture and Commerce, the President may, by proclamation designate any tract or tracts of land of the public domain for the establishment of agricultural colonies;

and although the disposition of the lands to the colonists shall be made under the provisions of this Act, yet, while the Government shall have the supervision and management of said colonies, the Secretary of Agriculture and Commerce may make the necessary rules and regulations for the organization and internal administration of the same. The Secretary of Agriculture and Commerce may also, under conditions to be established by the Assembly, turn over a colony so reserved to any person or corporation, in order that such person or corporation may clear, break, and prepare for cultivation the lands of said colony and establish the necessary irrigation system and suitable roads and fences; but final disposition shall be made of the land in accordance with the provisions of this Act, subject, however, to such conditions as the National Assembly may establish for the reimbursement of the expense incurred in putting such lands in condition for cultivation: Provided, That the National Assembly may direct that such land so prepared for cultivation may be disposed of only by sale or lease. CHAPTER XII PROVISIONS COMMON TO RESERVATIONS Sec. 86. A certified copy of every proclamation of the President issued under the provisions of this title shall be forwarded to the Director of Lands for record in his office, and a copy of this record shall be forwarded to the register of deeds of the province or city where the land lies. Upon receipt of such certified copy, the Director of Lands shall order the immediate survey of the proposed reservation if the land has not yet been surveyed, and as soon as the plat has been completed, he shall proceed in accordance with the next following section. Sec. 87. If all the lands included in the proclamation of the President are not registered under the Land Registration Act, the Solicitor-General, if requested to do so by the Secretary of Agriculture and Commerce, shall proceed in accordance with the provision of section fifty-three of this Act. Sec. 88. The tract or tracts of land reserved under the provisions of section eighty-three shall be non-alienable and shall not be subject to occupation, entry, sale, lease, or other disposition until again declared alienable under the provisions of this Act or by proclamation of the President. TITLE VI GENERAL PROVISIONS CHAPTER XIII APPLICATIONS: PROCEDURE, CONCESSION OF LANDS, AND LEGAL RESTRICTIONS AND ENCUMBRANCES Sec. 89. All applications filed under the provisions of this Act shall be addressed to the Director of Lands. Sec. 90. Every application under the provisions of this Act shall be made under oath and shall set forth: (a) The full name of applicant, his age, place of birth, citizenship, civil status, and post-office address. In case the applicant is a corporation, association or co-partnership, the application shall be accompanied with a certified copy of its articles of incorporation, association or co-partnership together with an affidavit of its President, manager, or other responsible officer, giving the names of the stockholders or members, their citizenship, and the number of shares subscribed by each. (b) That the applicant has all the qualifications required by this Act in the case. (c) That he has none of the disqualifications mentioned herein. (d) That the application is made in good faith, for the actual purpose of using the land for the object specified in the application and for no other purpose, and that the land is suitable for the purpose to which it is to be devoted. (e) That the application is made for the exclusive benefit of the application and not, either directly or indirectly, for the benefit of any other person or persons, corporation, association, or partnership. (f) As accurate a description of the land as may be given, stating its nature the province, municipality, barrio, and sitio

where it is located, and its limits and boundaries, specifying those having reference to accidents of the ground or permanent monuments, if any. (g) Whether all or part of the land is occupied or cultivated or improved, and by whom, giving his post-office address, and whether the land has been occupied or cultivated or improved by the applicant or his ascendant, the name of the ascendant, the relationship with him, the date and place of the death of the ascendant, the date when the possession and cultivation began, and description of the improvements made, accompanying satisfactory evidence of the relationship of the applicant with the ascendant, and of the death of the latter and the descendants left by him, in case it is alleged that he occupied and cultivated the land first; or whether there are indications of its having been occupied, cultivated, or improved entirely or partially, and if so, in what such indications consist, whether he has made investigations as to when and by whom such improvements were made, and if so, how such investigations were made and what was the result thereof; or whether the land is not occupied, improved, or cultivated either entirely or partially, and there are no indications of it having ever been occupied, improved, or cultivated, and in this case, what is the condition of the land. (h) That the land applied for is neither timber nor mineral land and does not contain guano or deposits of salts or coal. (i) That the applicant agrees that a strip forty meters wide starting from the bank on each side of any river or stream that may be found on the land applied for, shall be demarcated and preserved as permanent timberland to be planted exclusively to trees of known economic value, and that he shall not make any clearing thereon or utilize the same for ordinary farming purposes even after patent shall have been issued to him or a contract of lease shall have been executed in his favor. 68 Sec. 91. The statements made in the application shall be considered as essential conditions and parts of any concession, title, or permit issued on the basis of such application, and any false statements therein or omission of facts altering, changing, or modifying the consideration of the facts set forth in such statements, and any subsequent modification, alteration, or change of the material facts set forth in the application shall ipso facto produce the cancellation of the concession, title, or permit granted. It shall be the duty of the Director of Lands, from time to time and whenever he may deem it advisable, to make the necessary investigations for the purpose of ascertaining whether the material facts set out in the application are true, or whether they continue to exist and are maintained and preserved in good faith, and for the purposes of such investigation, the Director of Lands is hereby empowered to issue subpoenas and subpoenas duces tecum and, if necessary, to obtain compulsory process from the courts. In every investigation made in accordance with this section, the existence of bad faith, fraud, concealment, or fraudulent and illegal modification of essential facts shall be presumed if the grantee or possessor of the land shall refuse or fail to obey a subpoena or subpoena duces tecum lawfully issued by the Director of Lands or his authorized delegates or agents, or shall refuse or fail to give direct and specific answers to pertinent questions, and on the basis of such presumption, an order of cancellation may issue without further proceedings. Sec. 92. Although the maximum area of public land that may be acquired is fixed, yet the spirit of this Act is that the rule which must determine the real area to be granted is the beneficial use of the land. The concession or disposition shall be for less than the maximum area authorized if, at the time of the issuance of the patent or of the concession or disposition, it shall appear that the applicant is utilizing and is only able to utilize a smaller area, even though the application is for a greater area. For the purposes of this section, the Director of Lands is authorized to determine the area that may be granted to the applicant, and to deny or cancel or limit any application for concession, purchase, or lease if convinced of the lack of means of the applicant for using the land for the purpose for which he has requested it. Sec. 93. Lands applied for under this Act shall conform to the legal subdivisions and shall be contiguous if comprising more

than one subdivision. If subdivisions have not been made on the date of the application, the lands shall be rectangular in form so far as practicable, but it shall be endeavored to make them conform to the legal subdivision as soon as the same has been made, provided the interests of the applicant or grantee are protected; and the subdivision assigned to the applicant or grantee shall, so far as practicable, include the land improved or cultivated. The regulations to be issued for the execution of the provisions of this section shall take into account the legal subdivision to be made by the Government and the inadvisability of granting the best land at a given place to only one person. Sec. 94. In case the legal subdivisions have already been made at the time of the filing of the application, no charge shall be made for the survey; but if the legal subdivisions have not yet been made, the cost of the survey shall be charged to the Government, except in the following cases: (a) In purchases under chapters five and ten of this Act, the cost of the survey shall be charged to the purchaser if the same is a corporation, association, or partnership; in other purchases the purchases, whoever it be, shall pay the total cost of the survey. (b) In leases, the cost of the survey shall be paid by the lessee; but at any time after the first five years from the approval of the lease, and during Cost of the life of the same, the lessee shall be entitled to the reimbursement of one-half of the cost of the survey, if he shows to the satisfaction of the Director of Lands that he has occupied and improved a sufficient area of the land or incurred sufficient expenses in connection therewith to warrant such reimbursement. Section95. If before the delimitation and survey of a tract of public land the President shall declare the same disposable or alienable and such land shall be actually occupied by a person other than the applicant, the Director of Lands shall inform the occupant of his prior right to apply for the land and shall give him one hundred and twenty days time in which to file the application or apply for the concession by any of the forms of disposition authorized by this Act, if such occupant is qualified to acquire a concession under this Act. Sec. 96. As soon as any land of the public domain has been surveyed, delimited, and classified, the President may, in the order issued by him declaring it open for disposition, designate a term within which occupants with improvements but not entitled to free patents may apply for the land occupied by them, if they have the qualifications required by this Act. Sec. 97. If in the case of the two last preceding sections, the occupant or occupants have not made application under any of the provisions of this Act at the expiration of the time limit fixed, they shall lose any prior right to the land recognized by this Act, and the improvements on the land, if any, shall be forfeited to the Government. Sec. 98. All rights in and interest to, and the improvements and crops upon, land for which an application has been denied or canceled or a patent or grant refused, or a contract or concession rescinded or annulled, shall also be forfeited to the Government. Sec. 99. The Secretary of Agriculture and Commerce may order such improvements and crops to be appraised separately, for sale to the new applicant or grantee, or may declare such land open only to sale or lease. Sec. 100. In case the cancellation is due to delinquency on the part of the applicant or grantee, the same shall be entitled to the reimbursement of the proceeds of the sale of the improvements and crops, after deducting the total amount of his indebtedness to the Government and the expense incurred by it in the sale of the improvements or crops and in the new concession of the land. Sec. 101. All actions for the reversion to the Government of lands of the public domain or improvements thereon shall be instituted by the Solicitor-General or the officer acting in his stead, in the proper courts, in the name of the Commonwealth of the Philippines. Sec. 102. Any person, corporation, or association may file an objection under oath to any application or concession under this Act, grounded on any reason sufficient under this Act for the denial or cancellation of the application or the denial of

the patent or grant. If, after the applicant or grantee has been given suitable opportunity to be duly heard, the objection is found to be well founded, the Director of Lands shall deny or cancel the application or deny patent or grant, and the person objecting shall, if qualified, be granted a prior right of entry for a term of sixty days from the date of the notice. Sec. 103. All the proofs, affidavits, and oaths of any kind required or necessary under this Act may be made before the justice of the peace 71 of the municipality in which the land lies, or before the judge or clerk of the Court of First Instance of the province in which the land lies, or before any justice of the peace or chargeable notary public of the province in which the land lies, or before any officer or employee of the Bureau of Lands authorized by law to administer oaths. The fees for the taking of final evidence before any of the officials herein-before mentioned shall be as follows: For each affidavit, fifty centavos. For each deposition of the applicant or the witness, fifty centavos. Sec. 104. Any owner of uncultivated agricultural land who knowingly permits application for the same to be made to the Government and the land to be tilled and improved by a bona fide grantee without protesting to the Bureau of Lands within one year after cultivation has begun, shall lose all to the part of the land so cultivated and improved, unless he shall bring action in the proper court before such action for recovery prescribes and obtains favorable judgment therein, in which case the court shall, upon its decision becoming final, order the payment to the grantee, within a reasonable period, of the indemnity fixed by said court for the cultivation and improvement. Sec. 105. If at any time the applicant or grantee shall die before the issuance of the patent or the final grant of the land, or during the life of the lease, or while the applicant or grantee still has obligations pending towards the Government, in accordance with this Act, he shall be succeeded in his rights and obligations with respect to the land applied for or granted or leased under this Act by his heirs in law, who shall be entitled to have issued to them the patent or final concession if they show that they have complied with the requirements therefor, and who shall be subrogated in all his rights and obligations for the purposes of this Act. Sec. 106. If at any time after the approval of the application and before the issuance of a patent or the final concession of the land, or during the life of the lease, or at any time when the applicant or grantee still has obligations pending with the Government, in accordance with this Act, it appears that the land applied for is necessary, in the public interest, for the protection of any source of water or for any work for the public benefit that the Government wishes to undertake, the Secretary of Agriculture and Commerce may order the cancellation of the application or the non issuance of the patent or concession or the exclusion from the land applied for of such portion as may be required, upon payment of the value of the improvements, if any. Sec. 107. All patents or certificates for land granted under this Act shall be prepared in the Bureau of Lands and shall be issued in the name of the Government of the Republic of the Philippines under the signature of the President of the Philippines: Provided, however, That the President of the Philippines may delegate to the Secretary of Agriculture and Natural Resources 74 and/or the Under secretary for Natural Resources 74 the power to sign patents or certificates covering lands not exceeding one hundred forty-four hectares in area, and to the Secretary of Agriculture and Natural Resources 75 the power to sign patents or certificates covering lands exceeding one hundred forty-four hectares in area: Provided, further, That District Land Officers in every province are hereby empowered to sign patents or certificates covering lands not exceeding five hectares in area when the office of the District Land Officer is properly equipped to carry out the purposes of this Act: Provided, That no applicant shall be permitted to split the area applied for by him in excess of the area fixed in this section among his relatives within the sixth degree of consanguinity or affinity excepting the applicant’s married children who are actually occupying the land: Provided, finally, That copies of said patents issued shall

be furnished to the Bureau of Lands for record purposes. No patent or certificate shall be issued by the District Land Officer unless the survey of the land covered by such patent or certificate, whether made by the Bureau of Lands or by a private surveyor, has been approved by the Director of Lands. The Director of Lands shall promptly act upon all surveys submitted to him for approval and return the same to the District Land Officer within ninety days after receipt of such surveys by his office. In case of disapproval, the Director of Lands shall state the reasons therefor. Any person aggrieved by the decision or action of the District Land Officer may, within thirty days from receipt of the copy of the said decision, appeal to the Director of Lands. Such patents or certificates shall be effective only for the purposes defined in Section one hundred and twenty-two of the land Registration Act, and actual conveyance of the land shall be effected only as provided in said section. All surveys pending approval by the Director of Lands at the time this Act takes effect shall be acted upon by him within ninety days from the effectivity of this Act. Section108. No patent shall issue nor shall any concession or contract be finally approved unless the land has been surveyed and an accurate plat made thereof by the Bureau of Lands. Sec. 109. In no case shall any land be granted under the provisions of this Act when this affects injuriously the use of any adjacent land or of the waters, rivers, creeks, foreshore, roads, or roadsteads, or vest the grantee with other valuable rights that may be detrimental to the public interest. Sec. 110. Patents or certificates issued under the provisions of this Act shall not include nor convey the title to any gold, silver, copper, iron, or other metals or minerals, or other substances containing minerals, guano, gums, precious stones, coal, or coal oil contained in lands granted thereunder. These shall remain to be property of the State. Sec. 111. All persons receiving title to lands under the provisions of this Act shall hold such lands subject to the provisions hereof and to the same public servitudes as exist upon lands owned by private persons, including those with reference to the littoral of the sea and the banks of navigable rivers or rivers upon which rafting may be done. Sec. 112. Said land shall further be subject to a right-of-way not exceeding sixty (60) meters in width for public highways, railroads, irrigation ditches, aqueducts, telegraph and telephone lines and similar works as the Government or any public or quasi-public service or enterprise, including mining or forest concessionaires, may reasonably require for carrying on their business, with damages for the improvements only. 77 Sec. 113. The beneficial use of water shall be the basis, the measure, and the limit of all rights thereto, and the patents herein granted shall be subject to the right of the Government to make such rules and regulations for the use of water and the protection of the water supply, and for other public purposes, as it may deem best for the public good. Whenever, by priority of possession, rights to the use of water for mining, agricultural, manufacturing, or other purposes have vested and accrued, and the same are recognized and acknowledged by the local customs, or by the laws and decisions of the courts, the possessors and owners of such vested rights shall be maintained and protected in the same, and all patents granted under this Act shall be subject to any vested and accrued rights to ditches and reservoirs used in connection with such water rights as may have been acquired in the manner above described prior to April eleven, eighteen hundred and ninety-nine. Sec. 114. There is hereby reserved from the operation of all patents, certificates, entries, and grants by the Government authorized under this Act the right to use for the purposes of power any flow of water in any stream running through or by the land granted, the convertible power from which at ordinary low water exceeds fifty horse power. Where the convertible power in any stream running through or by land granted under the authority of this Act thus exceeds fifty horsepower, and there is no means of using such power except by the occupation of a part of the land granted under authority of this Act, then so much land as is reasonably

necessary for the mill site or site for the power house, and for a suitable dam and site for massing the water, is hereby excepted from such grants, not exceeding four hectares, and a right of way to the nearest public highway from the land thus excepted, and also a right of way for the construction and maintenance of such flumes, aqueducts, wires, poles, or order conduits as may be needed in conveying the water to the point where its fall will yield the greatest power, or the power from the point of conversion to the point of use, is reserved as a servitude or easement upon the land granted by authority of this Act: Provided, however, That when the Government or any concessionaire of the Government shall take possession of the land under this section which a grantee under this Act shall have paid for, supposing it to be subject to grant under this Act, said grantee shall be entitled to indemnity from the Government or the concessionaire, as the case may be, in the amount, if any, paid by him to the Government for the land taken from him by virtue of this section: And provided, further, That with respect to the flow of water, except for converting the same into power exceeding fifty horse power, said grantee shall be entitled to the same use of the water flowing through or along his land that other private owners enjoy under the law, subject to the governmental regulation provided in the previous section. Water power privileges in which the convertible power at ordinary low water shall exceed fifty horse power shall be disposed of only upon terms established by an Act of the Assembly concerning the use, lease or acquisition of such water privilege. Sec. 115. All lands granted by virtue of this Act, including homesteads upon which final proof has not been made or approved, shall, even though and while the title remains in the State, be subject to the ordinary taxes, which shall be paid by the grantee or the applicant, beginning with the year next following the one in which the homestead application has been filed, or the concession has been approved, or the contract has been signed, as the case may be, on the basis of the value fixed in such filing, approval or signing of the application, concession or contract. Sec. 116. The appraisal or reappraisal of the lands or improvements subject to concession or disposition under this Act shall be made by the Director of Lands, with the approval of the Secretary of Agriculture and Commerce. The Director of Lands may request the assistance of the provincial treasurer of the province in which the land lies or may appoint a committee for such purpose in the province or in the municipality in which the land lies. In no case shall the appraisal or reappraisal be less than the expense incurred or which may be incurred by the Government in connection with the application or concession, nor shall any reappraisal be made with an increase of more than one hundred per centum upon the appraisal or reappraisal next preceding. Sec.117. All sums due and payable to the Government under this Act, except homestead fees, shall draw simple interest at the rate of four per centum per annum from and after the date in which the debtor shall become delinquent. Sec. 118. Except in favor of the Government or any of its branches, units, or institutions, lands acquired under free patent or homestead provisions shall not be subject to encumbrance or alienation from the date of the approval of the application and for a term of five years from and after the date of issuance of the patent or grant, nor shall they become liable to the satisfaction of any debt contracted prior to the expiration of said period, but the improvements or crops on the land may be mortgaged or pledged to qualified persons, associations, or corporations. No alienation, transfer, or conveyance of any homestead after five years and before twenty-five years after issuance of title shall be valid without the approval of the Secretary of Agriculture and Commerce, which approval shall not be denied except on constitutional and legal grounds. Sec. 119. Every conveyance of land acquired under the free patent or homestead provisions, when proper, shall be subject to repurchase by the applicant, his widow, or legal heirs, within a period of five years from the date of the conveyance. Sec. 120. Conveyance and encumbrance made by persons belonging to the so-called “non-Christian Filipinos” or national

cultural minorities, when proper, shall be valid if the person making the conveyance or encumbrance is able to read and can understand the language in which the instrument or conveyance or encumbrances is written. Conveyances and encumbrances made by illiterate non-Christian or literate nonChristians where the instrument of conveyance or encumbrance is in a language not understood by the said literate non-Christians shall not be valid unless duly approved by the Chairman of the Commission on National Integration. Sec. 121. Except with the consent of the grantee and the approval of the Secretary of Natural Resources, and solely for commercial, industrial, educational, religious or charitable purposes or for a right of way, no corporation, association, or partnership may acquire or have any right, title, interest, or property right whatsoever to any land granted under the free patent, homestead, or individual sale provisions of this Act or to any permanent improvement on such land. The provisions of Section 124 of this Act to the contrary notwithstanding, any acquisition of such land, rights thereto or improvements thereon by a corporation, association, or partnership prior to the promulgation of this Decree for the purposes herein stated is deemed valid and binding; Provided, That no final decision of reversion of such land to the State has been rendered by a court; And Provided, further, That such acquisition is approved by the Secretary of Natural Resources within six (6) months from the effectivity of this Decree. Sec. 122. No land originally acquired in any manner under the provisions of this Act, nor any permanent improvement on such land, shall encumbered, alienated, or transferred, except to persons, corporations, associations, or partnerships who may acquire lands of the public domain under this Act or to corporations organized in the Philippines authorized therefor by their charters. Except in cases of hereditary succession, no land or any portion thereof originally acquired under the free patent, homestead, or individual sale provisions of this Act, or any permanent improvement on such land, shall be transferred or assigned to any individual, nor shall such land or any permanent improvement thereon be leased to such individual, when the area of said land, added to that of his own, shall exceed one hundred and forty-four hectares. Any transfer, assignment, or lease made in violation hereof, shall be null and void. Sec. 123. No land originally acquired in any manner under the provisions of any previous Act, ordinance, royal order, royal decree, or any other provision of law formerly in force in the Philippines with regard to public lands, terrenos baldios y realengos, or lands of any other denomination that were actually or presumptively of the public domain, or by royal grant or in any other form, nor any permanent improvement on such land, shall be encumbered, alienated, or conveyed, except to persons, corporations or associations who may acquire land of the public domain under this Act or to corporate bodies organized in the Philippines whose charters authorize them to do so: Provided, however, That this prohibition shall not be applicable to the conveyance or acquisition by reason of hereditary succession duly acknowledged and legalized by competent courts; Provided, further, That in the event of the ownership of the lands and improvements mentioned in this section and in the last preceding section being transferred by judicial decree to persons, corporations or associations not legally capacitated to acquire the same under the provisions of this Act, such persons, corporations, or associations shall be obliged to alienate said lands or improvements to others so capacitated within the precise period of five years; otherwise, such property shall revert to the Government. Sec. 124. Any acquisition, conveyance, alienation, transfer, or other contract made or executed in violation of any of the provisions of sections one hundred and eighteen, one hundred and twenty, one hundred and twenty-one, one hundred and twenty two, and one hundred and twenty-three of this Act shall be unlawful and null and void from its execution and shall produce the effect of annulling and cancelling the grant, title, patent, or permit originally issued, recognized or

confirmed, actually or presumptively, and cause the reversion of the property and its improvements to the State. Sec. 125. The provisions of sections twenty-two, twenty-three, thirty-three, one hundred and twenty-two, and one hundred and twenty-three of this Act, and any other provision or provisions restricting or tending to restrict the right of persons, corporations, or associations to acquire, hold, lease, encumber, dispose of, or alienate land in the Philippines, or permanent improvements thereon, or any interest therein, shall not be applied in cases in which the right to acquire, hold or dispose of such land, permanent improvements thereon or interests therein in the Philippines is recognized by existing treaties in favor of citizens or subjects of foreign nations and corporations or associations organized and constituted by the same, which right, in so far as it exists under such treaties, shall continue and subsist in the manner and to the extent stipulated in said treaties, and only while these are in force, but not thereafter. Sec. 126. All public auctions provided for in the foregoing chapters in the disposition of public lands shall be held, wherever possible, in the province where the land is located, or, in the office of the Bureau of Lands in Manila REPUBLIC ACT NO. 8371: "The Indigenous Peoples Rights Act Sec. 2. Declaration of State Policies.- The State shall recognize and promote all the rights of Indigenous Cultural Communities/Indigenous Peoples (ICCs/IPs) hereunder enumerated within the framework of the Constitution: a) The State shall recognize and promote the rights of ICCs/IPs within the framework of national unity and development; b)The State shall protect the rights of ICCs/IPs to their ancestral domains to ensure their economic, social and cultural well being and shall recognize the applicability of customary laws governing property rights or relations in determining the ownership and extent of ancestral domain; c) The State shall recognize, respect and protect the rights of ICCs/IPs to preserve and develop their cultures, traditions and institutions. It shall consider these rights in the formulation of national laws and policies; d) The State shall guarantee that members of the ICCs/IPs regardless of sex, shall equally enjoy the full measure of human rights and freedoms without distinctions or discriminations; e) The State shall take measures, with the participation of the ICCs/IPs concerned, to protect their rights and guarantee respect for their cultural integrity, and to ensure that members of the ICCs/IPs benefit on an equal footing from the rights and opportunities which national laws and regulations grant to other members of the population and f) The State recognizes its obligations to respond to the strong expression of the ICCs/IPs for cultural integrity by assuring maximum ICC/IP participation in the direction of education, health, as well as other services of ICCs/IPs, in order to render such services more responsive to the needs and desires of these communities. Towards these ends, the State shall institute and establish the necessary mechanisms to enforce and guarantee the realization of these rights, taking into consideration their customs, traditions, values, beliefs, their rights to their ancestral domains. CHAPTER ll DEFINITION OF TERMS

Sec. 3. Definition of Terms.- For purposes of this Act, the following terms shall mean: a) Ancestral Domains - Subject to Section 56 hereof, refer to all areas generally belonging to ICCs/IPs comprising lands,inland waters, coastal areas, and natural resources therein, held under a claim of ownership, occupied or possessed by ICCs/IPs, themselves or through their ancestors, communally or individually since time immemorial, continuously to the present except when interrupted by war, force majeure or displacement by force, deceit, stealth or as a consequence of government projects or any other voluntary dealings entered into by government and private individuals, corporations, and which are necessary to ensure their economic, social and cultural welfare. It shall include ancestral land, forests, pasture, residential, agricultural, and other lands individually owned whether alienable and disposable or otherwise, hunting grounds, burial grounds, worship areas, bodies of water, mineral and other natural resources, and lands which may no longer be exclusively occupied by ICCs/IPs but from which their traditionally had access to for their subsistence and traditional activities, particularly the home ranges of ICCs/IPs who are still nomadic and/or shifting cultivators; b) Ancestral Lands - Subject to Section 56 hereof, refers to land occupied, possessed and utilized by individuals, families and clans who are members of the ICCs/IPs since time immemorial, by themselves or through their predecessors-in-interest, under claims of individual or traditional group ownership,continuously, to the present except when interrupted by war, force majeure or displacement by force, deceit, stealth, or as a consequence of government projects and other voluntary dealings entered into by government and private individuals/corporations, including, but not limited to, residential lots, rice terraces or paddies, private forests, swidden farms and tree lots; c) Certificate of Ancestral Domain Title - refers to a title formally recognizing the rights of possession and ownership of ICCs/IPs over their ancestral domains identified and delineated in accordance with this law; d) Certificate of Ancestral Lands Title - refers to a title formally recognizing the rights of ICCs/IPs over their ancestral lands; e) Communal Claims - refer to claims on land, resources and rights thereon, belonging to the whole community within a defined territory f) Customary Laws - refer to a body of written and/or unwritten rules, usages, customs and practices traditionally and continually recognized, accepted and observed by respective ICCs/IPs; g) Free and Prior Informed Consent - as used in this Act shall mean the consensus of all members of the ICCs/IPs to; be determined in accordance with their respective customary

laws and practices, free from any external manipulation, interference and coercion, and obtained after fully disclosing the intent and scope of the activity, in a language an process understandable to the community; h) Indigenous Cultural Communities/Indigenous Peoples - refer to a group of people or homogenous societies identified by self-ascription and ascription by other, who have continuously lived as organized community on communally bounded and defined territory, and who have, under claims of ownership since time immemorial, occupied, possessed customs, tradition and other distinctive cultural traits, or who have, through resistance to political, social and cultural inroads of colonization, non-indigenous religions and culture, became historically differentiated from the majority of Filipinos. ICCs/IPs shall likewise include peoples who are regarded as indigenous on account of their descent from the populations which inhabited the country, at the time of conquest or colonization, or at the time of inroads of non-indigenous religions and cultures, or the establishment of present state boundaries, who retain some or all of their own social, economic, cultural and political institutions, but who may have been displaced from their traditional domains or who may have resettled outside their ancestral domains; i) Indigenous Political Structure - refer to organizational and cultural leadership systems, institutions, relationships, patterns and processed for decision-making and participation, identified by ICCs/IPs such as, but not limited to, Council of Elders, Council of Timuays, Bodong Holder, or any other tribunal or body of similar nature; j) Individual Claims - refer to claims on land and rights thereon which have been devolved to individuals, families and clans including, but not limited to, residential lots, rice terraces or paddies and tree lots; k) National Commission on Indigenous Peoples (NCIP) - refers to the office created under this Act, which shall be under the Office of the President, and which shall be the primary government agency responsible for the formulation and implementation of policies, plans and programs to recognize, protect and promote the rights of ICCs/IPs; l) Native Title - refers to pre-conquest rights to lands and domains which, as far back as memory reaches, have been held under a claim of private ownership by ICCs/IPs, have never been public lands and are thus indisputably presumed to have been held that way since before the Spanish Conquest; m) Nongovernment Organization - refers to a private, nonprofit voluntary organization that has been organized primarily for the delivery of various services to the ICCs/IPs and has an established track record for effectiveness and acceptability in the community where it serves;

n) People's Organization - refers to a private, nonprofit voluntary organization of members of an ICC/IP which is accepted as representative of such ICCs/IPs; o) Sustainable Traditional Resource Rights - refer to the rights of ICCs/IPs to sustainably use,manage, protect and conserve a) land, air, water, and minerals; b) plants, animals and other organisms; c) collecting, fishing and hunting grounds; d) sacred sites; and e) other areas of economic, ceremonial and aesthetic value in accordance with their indigenous knowledge, beliefs, systems and practices; and p) Time Immemorial - refers to a period of time when as far back as memory can go, certain ICCs/IPs are known to have occupied, possessed in the concept of owner, and utilized a defined territory devolved to them, by operation of customary law or inherited from their ancestors, in accordance with their customs and traditions. CHAPTER III RIGHTS TO ANCESTRAL DOMAINS Sec. 4. Concept of Ancestral Lands/Domains.- Ancestral lands/domains shall include such concepts of territories which cover not only the physical environment but the total environment including the spiritual and cultural bonds to the area which the ICCs/IPs possess, occupy and use and to which they have claims of ownership. Sec. 5. Indigenous Concept of Ownership.- Indigenous concept of ownership sustains the view that ancestral domains and all resources found therein shall serve as the material bases of their cultural integrity. The indigenous concept of ownership generally holds that ancestral domains are the ICC's/IP's private but community property which belongs to all generations and therefore cannot be sold, disposed or destroyed. It likewise covers sustainable traditional resource rights. Sec. 6. Composition of Ancestral Lands/Domains.- Ancestral lands and domains shall consist of all areas generally belonging to ICCs/IPs as referred under Sec. 3, items (a) and (b) of this Act. Sec. 7. Rights to Ancestral Domains.- The rights of ownership and possession of ICCs/IPs t their ancestral domains shall be recognized and protected. Such rights shall include: a. Rights of Ownership.- The right to claim ownership over lands, bodies of water traditionally and actually occupied by ICCs/IPs, sacred places, traditional hunting and fishing grounds, and all improvements made by them at any time within the domains; b. Right to Develop Lands and Natural Resources.- Subject to Section 56 hereof, right to develop, control and use lands and territories traditionally occupied, owned, or used; to manage and conserve natural resources within the territories and uphold the responsibilities for future generations; to benefit and share the profits from allocation and utilization of the natural resources found therein; the right to negotiate the terms and conditions for the exploration of natural resources in the areas for the purpose of ensuring ecological, environmental protection and the conservation measures, pursuant to national and customary laws; the right to an informed and intelligent participation in the formulation and implementation of any project, government or private, that will affect or impact upon the ancestral domains and to

receive just and fair compensation for any damages which they sustain as a result of the project; and the right to effective measures by the government to prevent any interfere with, alienation and encroachment upon these rights; c. Right to Stay in the Territories- The right to stay in the territory and not be removed therefrom. No ICCs/IPs will be relocated without their free and prior informed consent, nor through any means other than eminent domain. Where relocation is considered necessary as an exceptional measure, such relocation shall take place only with the free and prior informed consent of the ICCs/IPs concerned and whenever possible, they shall be guaranteed the right to return to their ancestral domains, as soon as the grounds for relocation cease to exist. When such return is not possible, as determined by agreement or through appropriate procedures, ICCs/IPs shall be provided in all possible cases with lands of quality and legal status at least equal to that of the land previously occupied by them, suitable to provide for their present needs and future development. Persons thus relocated shall likewise be fully compensated for any resulting loss or injury; d. Right in Case of Displacement.- In case displacement occurs as a result of natural catastrophes, the State shall endeavor to resettle the displaced ICCs/IPs in suitable areas where they can have temporary life support system: Provided, That the displaced ICCs/IPs shall have the right to return to their abandoned lands until such time that the normalcy and safety of such lands shall be determined: Provided, further, That should their ancestral domain cease to exist and normalcy and safety of the previous settlements are not possible, displaced ICCs/IPs shall enjoy security of tenure over lands to which they have been resettled: Provided, furthermore, That basic services and livelihood shall be provided to them to ensure that their needs are adequately addressed: e. Right to Regulate Entry of Migrants.- Right to regulate the entry of migrant settlers and organizations into the domains; f. Right to Safe and Clean Air and Water.- For this purpose, the ICCs/IPs shall have access to integrated systems for the management of their inland waters and air space; g. Right to Claim Parts of Reservations.- The right to claim parts of the ancestral domains which have been reserved for various purposes, except those reserved and intended for common and public welfare and service; and h. Right to Resolve Conflict.- Right to resolve land conflicts in accordance with customary laws of the area where the land is located, and only in default thereof shall the complaints be submitted to amicable settlement and to the Courts of Justice whenever necessary. Sec. 8. Rights to Ancestral Lands.- The right of ownership and possession of the ICCs/IPs, to their ancestral lands shall be recognized and protected. a. Right to transfer land/property.- Such right shall include the right to transfer land or property rights to/among members of the same ICCs/IPs, subject to customary laws and traditions of the community concerned. b. Right to Redemption.- In cases where it is shown that the transfer of land/property rights by virtue of any agreement or devise, to a non-member of the concerned ICCs/IPs is tainted by the vitiated consent of the ICCs/IPs,or is transferred for an unconscionable consideration or price, the transferor ICC/IP shall have the right to redeem the same within a period not exceeding fifteen (15) years from the date of transfer.

Sec. 9. Responsibilities of ICCs/IPs to their Ancestral Domains.ICCs/IPs occupying a duly certified ancestral domain shall have the following responsibilities: a. Maintain Ecological Balance- To preserve, restore, and maintain a balanced ecology in the ancestral domain by protecting the flora and fauna, watershed areas, and other reserves; b. Restore Denuded Areas- To actively initiate, undertake and participate in the reforestation of denuded areas and other development programs and projects subject to just and reasonable remuneration; and c. Observe Laws- To observe and comply with the provisions of this Act and the rules and regulations for its effective implementation. Sec. 10. Unauthorized and Unlawful Intrusion.- Unauthorized and unlawful intrusion upon, or use of any portion of the ancestral domain, or any violation of the rights herein before enumerated, shall be punishable under this law. Furthermore, the Government shall take measures to prevent non-ICCs/IPs from taking advantage of the ICCs/IPs customs or lack of understanding of laws to secure ownership, possession of land belonging to said ICCs/IPs. Sec. 11. Recognition of Ancestral Domain Rights.- The rights of ICCs/IPs to their ancestral domains by virtue of Native Title shall be recognized and respected. Formal recognition, when solicited by ICCs/IPs concerned, shall be embodied in a Certificate of Ancestral Domain Title (CADT), which shall recognize the title of the concerned ICCs/IPs over the territories identified and delineated. Sec. 12. Option to Secure Certificate of Title under Commonwealth Act 141, as amended, or the Land Registration Act 496.- Individual members of cultural communities, with respect to individually-owned ancestral lands who, by themselves or through their predecessors-in -interest, have been in continuous possession and occupation of the same in the concept of owner since the immemorial or for a period of not less than thirty (30) years immediately preceding the approval of this Act and uncontested by the members of the same ICCs/IPs shall have the option to secure title to their ancestral lands under the provisions of Commonwealth Act 141, as amended, or the Land Registration Act 496. For this purpose, said individually-owned ancestral lands, which are agricultural in character and actually used for agricultural, residential, pasture, and tree farming purposes, including those with a slope of eighteen percent (18%) or more, are hereby classified as alienable and disposable agricultural lands. The option granted under this Section shall be exercised within twenty (20) years from the approval of this Act. CHAPTER IV RIGHT TO SELF-GOVERNANCE AND EMPOWERMENT Sec. 13. Self-Governance.- The State recognizes the inherent right of ICCs/IPs to self-governance and self-determination and respects the integrity of their values, practices and institutions. Consequently, the State shall guarantee the right of ICCs/IPs to freely pursue their economic, social and cultural development. Sec. 14. Support for Autonomous Regions.- The State shall continue to strengthen and support the autonomous regions created under the Constitution as they may require or need. The State shall likewise encourage other ICCs/IPs not included

or outside Muslim Mindanao and the Cordillera to use the form and content of their ways of life as may be compatible with the fundamental rights defined in the Constitution of the Republic of the Philippines and other internationally recognized human rights. Sec. 15. Justice System, Conflict Resolution Institutions and Peace Building Processes.- The ICCs/IPs shall have the right to use their own commonly accepted justice systems, conflict resolution institutions, peace building processes or mechanisms and other customary laws and practices within their respective communities and as may be compatible with the national legal system and with internationally recognized human rights. Sec. 16. Right to Participate in Decision -Making.- ICCs/IPs have the right to participate fully, if they so choose, at all levels of decision-making in matters which may affect their rights, lives and destinies through procedures determined by them as well as to maintain and develop their own indigenous political structures. Consequently, the State shall ensure that the ICCs/IPs shall be given mandatory representation in policy-making bodies and other local legislative councils. Sec. 17. Right to Determine and Decide Priorities for Development.- The ICCs/IPs shall have the right to determine and decide their own priorities for development affecting their lives, beliefs, institutions, spiritual well-being, and the lands they own, occupy or use. They shall participate in the formulation,implementation and evaluation of policies, plans and programs for national, regional and local development which may directly affect them. Sec. 18. Tribal Barangays.- The ICCs/IPs living in contiguous areas or communities where they form the predominant population but which are located in municipalities, provinces or cities where they do not constitute the majority of the population, may form or constitute a separate barangay in accordance with the Local Government Code on the creation of tribal barangays. Sec. 19. Role of Peoples Organizations.- The State shall recognize and respect the role of independent ICCs/IPs organizations to enable the ICCs/IPs to pursue and protect their legitimate and collective interests and aspirations through peaceful and lawful means. Sec. 20. Means for Development /Empowerment of ICCs/IPs.The Government shall establish the means for the full development/empowerment of the ICCs/IPs own institutions and initiatives and, where necessary, provide the resources needed therefor. CHAPTER V SOCIAL JUSTICE AND HUMAN RIGHTS Sec. 21. Equal Protection and Non-discrimination of ICCs/IPs.Consistent with the equal protection clause of the Constitution of the Republic of the Philippines, the Charter of the United Nations, the Universal Declaration of Human Rights including the Convention on the Elimination of Discrimination Against Women and International Human Rights Law, the State shall, with due recognition of their distinct characteristics and identity, accord to the members of the ICCs/IPs the rights, protections and privileges enjoyed by the rest of the citizenry. It shall extend to them the same employment rights, opportunities, basic services, educational and other rights and privileges available to every member of the society. Accordingly, the State shall likewise ensure that the employment of any form of force of coersion against ICCs/IPs shall be dealt with by law.

The State shall ensure that the fundamental human rights and freedoms as enshrined in the Constitution and relevant international instruments are guaranteed also to indigenous women. Towards this end, no provision in this Act shall be interpreted so as to result in the diminution of rights and privileges already recognized and accorded to women under existing laws of general application. Sec. 22. Rights during Armed Conflict.- ICCs/IPs have the right to special protection and security in periods of armed conflict. The State shall observe international standards, in particular, the Fourth Geneva Convention of 1949, for the protection of civilian populations in circumstances of emergency and armed conflict, and shall not recruit members of the ICCs/IPs against their will into armed forces, and in particular, for the use against other ICCs/IPs; not recruit children of ICCs/IPs into the armed forces under any circumstance; nor force indigenous individuals to abandon their lands, territories and means of subsistence, or relocate them in special centers for military purposes under any discriminatory condition. Sec. 23. Freedom from Discrimination and Right to Equal Opportunity and Treatment.- It shall be the right of the ICCs/IPs to be free from any form of discrimination, with respect to recruitment and conditions of employment, such that they may enjoy equal opportunities as other occupationally-related benefits, informed of their rights under existing labor legislation and of means available to them for redress, not subject to any coercive recruitment systems, including bonded labor and other forms of debt servitude; and equal treatment in employment for men and women, including the protection from sexual harassment. Towards this end, the State shall within the framework of national laws and regulations, and in cooperation with the ICCs/IPs concerned, adopt special measures to ensure the effective protection with regard to the recruitment and conditions of employment of persons belonging to these communities, to the extent that they are not effectively protected by the laws applicable to workers in general. ICCs/IPs shall have the right to association and freedom for all trade union activities and the right to conclude collective bargaining agreements with employers' conditions. They shall likewise have the right not to be subject to working conditions hazardous to their health, particularly through exposure to pesticides and other toxic substances. Sec. 24. Unlawful Acts Pertaining to Employment.- It shall be unlawful for any person: a. To discriminate against any ICC/IP with respect to the terms and conditions of employment on account of their descent. Equal remuneration shall be paid to ICC/IP and non-ICC/IP for work of equal value; and b. To deny any ICC/IP employee any right or benefit herein provided for or to discharge them for the purpose of preventing them from enjoying any of the rights or benefits provided under this Act. Sec. 25. Basic Services.- The ICC/IP have the right to special measures for the immediate, effective and continuing improvement of their economic and social conditions, including in the areas of employment, vocational training and retraining, housing, sanitation, health and social security. Particular attention shall be paid to the rights and special needs of indigenous women, elderly, youth, children and differently-abled persons. Accordingly, the State shall guarantee the right of ICCs/IPs to government 's basic services which shall include, but not limited to water and electrical facilities, education, health and infrastructure.

Sec. 26. Women.- ICC/IP women shall enjoy equal rights and opportunities with men, as regards the social, economic, political and cultural spheres of life. The participation of indigenous women in the decision-making process in all levels, as well as in the development of society, shall be given due respect and recognition. The State shall provide full access to education, maternal and child care, health and nutrition, and housing services to indigenous women. Vocational, technical, professional and other forms of training shall be provided to enable these women to fully participate in all aspects of social life. As far as possible, the State shall ensure that indigenous women have access to all services in their own languages. Sec. 27. Children and Youth.- The State shall recognize the vital role of the children and youth of ICCs/IPs in nationbuilding and shall promote and protect their physical, moral, spiritual, moral, spiritual, intellectual and social well-being. Towards this end, the State shall support all government programs intended for the development and rearing of the children and youth of ICCs/IPs for civic efficiency and establish such mechanisms as may be necessary for the protection of the rights of the indigenous children and youth. Sec. 28. Integrated System of Education.- The State shall, through the NCIP, provide a complete, adequate and integrated system of education, relevant to the needs of the children and Young people of ICCs/IPs. CHAPTER VI CULTURAL INTEGRITY Sec. 29. Protection of Indigenous Culture, traditions and institutions.- The state shall respect, recognize and protect the right of the ICCs/IPs to preserve and protect their culture, traditions and institutions. It shall consider these rights in the formulation of national plans and policies. Sec. 30. Educational Systems.- The State shall provide equal access to various cultural opportunities to the ICCs/IPs through the educational system, public or cultural entities, scholarships, grants and other incentives without prejudice to their right to establish and control their educational systems and institutions by providing education in their own language, in a manner appropriate to their cultural methods of teaching and learning. Indigenous children/youth shall have the right to all levels and forms of education of the State. Sec. 31. Recognition of Cultural Diversity.- The State shall endeavor to have the dignity and diversity of the cultures, traditions, histories and aspirations of the ICCs/IPs appropriately reflected in all forms of education, public information and cultural-educational exchange. Consequently, the State shall take effective measures, in consultation with ICCs/IPs concerned, to eliminate prejudice and discrimination and to promote tolerance, understanding and good relations among ICCs/IPs and all segments of society. Furthermore, the Government shall take effective measures to ensure that State-owned media duly reflect indigenous cultural diversity. The State shall likewise ensure the participation of appropriate indigenous leaders in schools, communities and international cooperative undertakings like festivals, conferences, seminars and workshops to promote and enhance their distinctive heritage and values. Sec. 32. Community Intellectual Rights.- ICCs/IPs have the right to practice and revitalize their own cultural traditions and customs. The State shall preserve, protect and develop the past, present and future manifestations of their cultures as well as the right to the restitution of cultural, intellectual, religious, and spiritual property taken without their free and

prior informed consent or in violation of their laws, traditions and customs.

recognition of their ancestral domains as well as their rights thereto.

Sec. 33. Rights to Religious, Cultural Sites and Ceremonies.ICCs/IPs shall have the right to manifest, practice, develop teach their spiritual and religious traditions, customs and ceremonies; the right to maintain, protect and have access to their religious and cultural sites; the right to use and control of ceremonial object; and the right to the repatriation of human remains. Accordingly, the State shall take effective measures, in cooperation with the burial sites, be preserved, respected and protected. To achieve this purpose, it shall be unlawful to:

Sec. 39. Mandate.- The NCIP shall protect and promote the interest and well-being of the ICCs/IPs with due regard to their beliefs, customs, traditions and institutions.

a. Explore, excavate or make diggings on archeological sites of the ICCs/IPs for the purpose of obtaining materials of cultural values without the free and prior informed consent of the community concerned; and b. Deface, remove or otherwise destroy artifacts which are of great importance to the ICCs/IPs for the preservation of their cultural heritage. Sec. 34. Right to Indigenous Knowledge Systems and Practices and to Develop own Sciences and Technologies.ICCs/IPs are entitled to the recognition of the full ownership and control and protection of their cultural and intellectual rights. They shall have the right to special measures to control, develop and protect their sciences, technologies and cultural manifestations, including human and other genetic resources, seeds, including derivatives of these resources, traditional medicines and health practices, vital medicinal plants, animals and minerals, indigenous knowledge systems and practices, knowledge of the properties of fauna and flora, oral traditions, literature, designs, and visual and performing arts. Sec. 35. Access to Biological and Genetic Resources.- Access to biological and genetic resources and to indigenous knowledge related to the conservation, utilization and enhancement of these resources, shall be allowed within ancestral lands and domains of the ICCs/IPs only with a free and prior informed consent of such communities, obtained in accordance with customary laws of the concerned community. Sec. 36. Sustainable Agro-Technical Development. - The State shall recognize the right of ICCs/IPs to a sustainable agrotechnological development and shall formulate and implement programs of action for its effective implementation. The State shall likewise promote the biogenetic and resource management systems among the ICCs/IPs and shall encourage cooperation among government agencies to ensure the successful sustainable development of ICCs/IPs. Sec. 37. Funds for Archeological and Historical Sites. - The ICCs/IPs shall have the right to receive from the national government all funds especially earmarked or allocated for the management and preservation of their archeological and historical sites and artifacts with the financial and technical support of the national government agencies. CHAPTER VII NATIONAL COMMISSION ON INDIGENOUS PEOPLES (NCIP) Sec. 38. National Commission on Indigenous Cultural Communities /Indigenous Peoples (NCCP).- to carry out the policies herein set forth, there shall be created the National Commission on ICCs/IPs (NCIP), which shall be the primary government agency responsible for the formulation and implementation of policies, plans and programs to promote and protect the rights and well-being of the ICCs/IPs and the

Sec. 40. Composition.- The NCIP shall be an independent agency under the Office of the President and shall be composed of seven (7) Commissioners belonging to ICCs/IPs, one (1) of whom shall be the Chairperson. The Commissioners shall be appointed by the President of the Philippines from a list of recommendees submitted by authentic ICCs/IPs: Provided, That the seven (7) Commissioners shall be appointed specifically from each of the following ethnographic areas: Region I and the Cordilleras; Region II; the rest of Luzon; Island Groups including Mindoro, Palawan, Romblon, Panay and the rest of the Visayas; Northern and Western Mindanao; Southern and Eastern Mindanao; and Central Mindanao: Provided, That at least two (2) of the seven (7) Commissioners shall be women. Sec. 41. Qualifications, Tenure, Compensation.The Chairperson and the six (6) Commissioners must be natural born Filipino citizens, bonafide members of ICCs/IPs as certified by his/her tribe, experienced in ethnic affairs and who have worked for at least ten (10) years with an ICC/IP community and/or any government agency involved in ICC/IP, at least 35 years of age at the time of appointment, and must be of proven honesty and integrity: Provided, That at least two (2) of the seven (7) Commissioners shall be the members of the Philippine Bar: Provided, further, That the members of the NCIP shall hold office for a period of three (3) years, and may be subject to re-appointment for another term: Provided, furthermore, That no person shall serve for more than two (2) terms. Appointment to any vacancy shall only be for the unexpired term of the predecessor and in no case shall a member be appointed or designated in a temporary or acting capacity: Provided, finally, That the Chairperson and the Commissioners shall be entitled to compensation in accordance with the Salary Standardization Law. Sec. 42. Removal from Office.- Any member of the NCIP may be removed from office by the President, on his own initiative or upon recommendation by any indigenous community, before the expiration of his term for cause and after complying with due process requirement of law. Sec. 43. Appointment of Commissioners.- The President shall appoint the seven (7) Commissioners of the NCIP within ninety (90) days from the effectivity of this Act. Sec. 44. Powers and Functions.- To accomplish its mandate, the NCIP shall have the following powers, jurisdiction and function: a) To serve as the primary government agency through which ICCs/IPs can seek government assistance and as the medium, thorough which such assistance may be extended; b) To review and assess the conditions of ICCs/IPs including existing laws and policies pertinent thereto and to propose relevant laws and policies to address their role in national development; c) To formulate and implement policies, plans, programs and projects for the economic, social and cultural development of the ICCs/IPs and to monitor the implementation thereof; d) To request and engage the services and support of experts from other agencies of government or employ private experts

and consultants as may be required in the pursuit of its objectives; e) To issue certificate of ancestral land/domain title; f) Subject to existing laws, to enter into contracts, agreements, or arrangement, with government or private agencies or entities as may be necessary to attain the objectives of this Act, and subject to the approval of the President, to obtain loans from government lending institutions and other lending institutions to finance its programs; g) To negotiate for funds and to accept grants, donations, gifts and/or properties in whatever form and from whatever source, local and international, subject to the approval of the President of the Philippines, for the benefit of ICCs/IPs and administer the same in accordance with the terms thereof; or in the absence of any condition, in such manner consistent with the interest of ICCs/IPs as well as existing laws; h) To coordinate development programs and projects for the advancement of the ICCs/IPs and to oversee the proper implementation thereof; i) To convene periodic conventions or assemblies of IPs to review, assess as well as propose policies or plans; j) To advise the President of the Philippines on all matters relating to the ICCs/IPs and to submit within sixty (60) days after the close of each calendar year, a report of its operations and achievements; k) To submit to Congress appropriate legislative proposals intended to carry out the policies under this Act; l) To prepare and submit the appropriate budget to the Office of the President; m) To issue appropriate certification as a pre-condition to the grant of permit, lease, grant, or any other similar authority for the disposition, utilization, management and appropriation by any private individual, corporate entity or any government agency, corporation or subdivision thereof on any part or portion of the ancestral domain taking into consideration the consensus approval of the ICCs/IPs concerned; n) To decide all appeals from the decisions and acts of all the various offices within the Commission: o) To promulgate the necessary rules and regulations for the implementation of this Act; p) To exercise such other powers and functions as may be directed by the President of the Republic of the Philippines; and q) To represent the Philippine ICCs/IPs in all international conferences and conventions dealing with indigenous peoples and other related concerns. Sec. 45. Accessibility and Transparency.- Subject to such limitations as may be provided by law or by rules and regulations promulgated pursuant thereto, all official records, documents and papers pertaining to official acts, transactions or decisions, as well as research data used as basis for policy development of the Commission shall be made accessible to the public.

Sec.46. Officers within the NCIP.- The NCIP shall have the following offices which shall be responsible for the implementation of the policies herein after provided: a. Ancestral Domains Office - The Ancestral Domain Office shall be responsible for the identification, delineation and recognition of ancestral land/domains. It shall also be responsible for the management of ancestral lands/domains in accordance with the master plans as well as the implementation of the ancestral domain rights of the ICCs/IPs as provided in Chapter III of this Act. It shall also issue, upon the free and prior informed consent of the ICCs/IPs concerned, certification prior to the grant of any license, lease or permit for the exploitation of natural resources affecting the interests of ICCs/IPs in protecting the territorial integrity of all ancestral domains. It shall likewise perform such other functions as the Commission may deem appropriate and necessary; b. Office on Policy, Planning and Research - The Office on Policy, Planning and Research shall be responsible for the formulation of appropriate policies and programs for ICCs/IPs such as, but not limited to, the development of a Five-Year Master Plan for the ICCs/IPs. Such plan shall undergo a process such that every five years, the Commission shall endeavor to assess the plan and make ramifications in accordance with the changing situations. The Office shall also undertake the documentation of customary law and shall establish and maintain a Research Center that would serve as a depository of ethnographic information for monitoring, evaluation and policy formulation. It shall assist the legislative branch of the national government in the formulation of appropriate legislation benefiting ICCs/IPs. c. Office of Education, Culture and Health - The Office on Culture, Education and Health shall be responsible for the effective implementation of the education, cultural and related rights as provided in this Act. It shall assist, promote and support community schools, both formal and non-formal, for the benefit of the local indigenous community, especially in areas where existing educational facilities are not accessible to members of the indigenous group. It shall administer all scholarship programs and other educational rights intended for ICC/IP beneficiaries in coordination with the Department of Education, Culture and Sports and the Commission on Higher Education. It shall undertake, within the limits of available appropriation, a special program which includes language and vocational training, public health and family assistance program and related subjects. It shall also identify ICCs/IPs with potential training in the health profession and encourage and assist them to enroll in schools of medicine, nursing, physical therapy and other allied courses pertaining to the health profession. Towards this end, the NCIP shall deploy a representative in each of the said offices who shall personally perform the foregoing task and who shall receive complaints from the ICCs/IPs and compel action from appropriate agency. It shall also monitor the activities of the National Museum and other similar government agencies generally intended to manage and preserve historical and archeological artifacts of the ICCs /IPs and shall be responsible for the implementation of such other functions as the NCIP may deem appropriate and necessary; d. Office on Socio-Economic Services and Special Concerns The Office on Socio-Economic Services and Special Concerns shall serve as the Office through which the NCIP shall coordinate with pertinent government agencies specially charged with the implementation of various basic socioeconomic services, policies, plans and programs affecting the ICCs/IPs to ensure that the same are properly and directly enjoyed by them. It shall also be responsible for such other functions as the NCIP may deem appropriate and necessary;

e. Office of Empowerment and Human Rights - The Office of Empowerment and Human Rights shall ensure that indigenous socio- political, cultural and economic rights are respected and recognized. It shall ensure that capacity building mechanisms are instituted and ICCs/IPs are afforded every opportunity, if they so choose, to participate in all level decision-making. It shall likewise ensure that the basic human rights, and such other rights as the NCIP may determine, subject to existing laws, rules and regulations are protected and promoted; f. Administrative Office - The Administrative Office shall provide the NCIP with economical, efficient and effective services pertaining to personnel, finance, records, equipment, security, supplies, and related services. It shall also administer the Ancestral Domains Fund; and g. Legal Affairs Office - There shall be a Legal Affairs Office which shall advice the NCIP on all legal matters concerning ICCs/IPs and which shall be responsible for providing ICCs/IPs with legal assistance in litigation involving community interest. It shall conduct preliminary investigation on the basis of complaints filed by the ICCs/IPs against a natural or juridical person believed to have violated ICCs/IPs rights. On the basis of its findings, it shall initiate the filing of appropriate legal or administrative action to the NCIP. Sec. 47. Other Offices.- The NCIP shall have the power to create additional offices as it may deem necessary subject to existing rules and regulations. Sec. 48. Regional and Field Offices.- Existing regional and field offices shall remain to function under the strengthened organizational structure of the NCIP. Other field office shall be created wherever appropriate and the staffing pattern thereof shall be determined by the NCIP: Provided, That in provinces where there are ICCs/IPs but without field offices, the NCIP shall establish field offices in said provinces. Sec. 49. Office of the Executive Director.- The NCIP shall create the Office of the Executive Director which shall serve as its secretariat. The office shall be headed by an Executive Director who shall be appointed by the President of the Republic of the Philippines upon the recommendation of the NCIP on a permanent basis. The staffing pattern of the office shall be determined by the NCIP subject to existing rules and regulations. Sec. 50. Consultative Body.- A body consisting of the traditional leaders, elders and representatives from the women and youth sectors of the different ICCs/IPs shall be constituted by the NCIP from the time to time to advise it on matters relating to the problems, aspirations and interests of the ICCs/IPs. CHAPTER VIII DELINEATION AND RECOGNITION OF ANCESTRAL DOMAINS

subsistence and traditional activities, particularly of ICCs/IPs who are still nomadic and/or shifting cultivators. Sec. 52. Delineation Process.- The identification and delineation of ancestral domains shall be done in accordance with the following procedures: a. Ancestral Domains Delineated Prior to this Act - The provisions hereunder shall not apply to ancestral domains/lands already delineated according to DENR Administrative Order No. 2, series of 1993, nor to ancestral lands and domains delineated under any other community/ancestral domain program prior to the enactment of his law. ICCs/IPs enactment of this law shall have the right to apply for the issuance of a Certificate of Ancestral Domain Title (CADT) over the area without going through the process outlined hereunder; b. Petition for Delineation - The process of delineating a specific perimeter may be initiated by the NCIP with the consent of the ICC/IP concerned, or through a Petition for Delineation filed with the NCIP, by a majority of the members of the ICCs/IPs; c. Delineation Paper - The official delineation of ancestral domain boundaries including census of all community members therein, shall be immediately undertaken by the Ancestral Domains Office upon filing of the application by the ICCs/IPs concerned. Delineation will be done in coordination with the community concerned and shall at all times include genuine involvement and participation by the members of the communities concerned; d. Proof required - Proof of Ancestral Domain Claims shall include the testimony of elders or community under oath, and other documents directly or indirectly attesting to the possession or occupation of the area since time immemorial by such ICCs/IPs in the concept of owners which shall be any one (1) of the following authentic documents:

1. Written accounts of the ICCs/IPs customs and traditions; 2. Written accounts of the ICCs/IPs political structure and institution; 3. Pictures showing long term occupation such as those of old improvements, burial grounds, sacred places and old villages; 4. Historical accounts, including pacts and agreements concerning boundaries entered into by the ICCs/IPs concerned with other ICCs/IPs; 5. Survey plans and sketch maps; 6. Anthropological data;

Sec. 51. Delineation and Recognition of Ancestral Domains.Self-delineation shall be guiding principle in the identification and delineation of ancestral domains. As such, the ICCs/IPs concerned shall have a decisive role in all the activities pertinent thereto. The Sworn Statement of the Elders as to the Scope of the territories and agreements/pacts made with neighboring ICCs/IPs, if any, will be essential to the determination of these traditional territories. The Government shall take the necessary steps to identify lands which the ICCs/IPs concerned traditionally occupy and guarantee effective protection of their rights of ownership and possession thereto. Measures shall be taken in appropriate cases to safeguard the rights of the ICCs/IPs concerned to land which may no longer be exclusively occupied by them, but to which they have traditionally had access for their

7. Genealogical surveys; 8. Pictures and descriptive histories of traditional communal forests and hunting grounds; 9. Pictures and descriptive histories of traditional landmarks such as mountains, rivers, creeks, ridges, hills, terraces and the like; and 10. Write-ups of names and places derived from the native dialect of the community.

e. Preparation of Maps - On the basis of such investigation and the findings of fact based thereon, the Ancestral Domains Office of the NCIP shall prepare a perimeter map, complete with technical descriptions, and a description of the natural features and landmarks embraced therein; f. Report of Investigation and Other Documents - A complete copy of the preliminary census and a report of investigation, shall be prepared by the Ancestral Domains Office of the NCIP; g. Notice and Publication - A copy of each document, including a translation in the native language of the ICCs/IPs concerned shall be posted in a prominent place therein for at least fifteen (15) days. A copy of the document shall also be posted at the local, provincial and regional offices of the NCIP, and shall be published in a newspaper of general circulation once a week for two (2) consecutive weeks to allow other claimants to file opposition thereto within fifteen (15) days from the date of such publication: Provided, That in areas where no such newspaper exists, broadcasting in a radio station will be a valid substitute: Provided, further, That mere posting shall be deemed sufficient if both newspaper and radio station are not available; h. Endorsement to NCIP - Within fifteen (15) days from publication, and of the inspection process, the Ancestral Domains Office shall prepare a report to the NCIP endorsing a favorable action upon a claim that is deemed to have sufficient proof. However, if the proof is deemed insufficient, the Ancestral Domains Office shall require the submission of additional evidence: Provided, That the Ancestral Domains Office shall reject any claim that is deemed patently false or fraudulent after inspection and verification: Provided, further, That in case of rejection, the Ancestral Domains Office shall give the applicant due notice, copy furnished all concerned, containing the grounds for denial. The denial shall be appealable to the NCIP: Provided, furthermore, That in cases where there are conflicting claims, the Ancestral Domains Office shall cause the contending parties to meet and assist them in coming up with a preliminary resolution of the conflict, without prejudice to its full adjudication according to the selection below. i. Turnover of Areas Within Ancestral Domains Managed by Other Government Agencies - The Chairperson of the NCIP shall certify that the area covered is an ancestral domain. The secretaries of the Department of Agrarian Reform, Department of Environment and Natural Resources, Department of the Interior and Local Government, and Department of Justice, the Commissioner of the National Development Corporation, and any other government agency claiming jurisdiction over the area shall be notified thereof. Such notification shall terminate any legal basis for the jurisdiction previously claimed; j. Issuance of CADT - ICCs/IPs whose ancestral domains have been officially delineated and determined by the NCIP shall be issued a CADT in the name of the community concerned, containing a list of all those identified in the census; and k. Registration of CADTs - The NCIP shall register issued certificates of ancestral domain titles and certificates of ancestral lands titles before the Register of Deeds in the place where the property is situated. Sec. 53. Identification, Ancestral Lands.-

Delineation

and

Certification

of

a. The allocation of lands within any ancestral domain to individual or indigenous corporate (family or clan) claimants shall be left to the ICCs/IPs concerned to decide in accordance with customs and traditions;

b. Individual and indigenous corporate claimants of ancestral lands which are not within ancestral domains, may have their claims officially established by filing applications for the identification and delineation of their claims with the Ancestral Domains Office. An individual or recognized head of a family or clan may file such application in his behalf or in behalf of his family or clan, respectively; c. Proofs of such claims shall accompany the application form which shall include the testimony under oath of elders of the community and other documents directly or indirectly attesting to the possession or occupation of the areas since time immemorial by the individual or corporate claimants in the concept of owners which shall be any of the authentic documents enumerated under Sec. 52 (d) of this act, including tax declarations and proofs of payment of taxes; d. The Ancestral Domains Office may require from each ancestral claimant the submission of such other documents, Sworn Statements and the like, which in its opinion, may shed light on the veracity of the contents of the application/claim; e. Upon receipt of the applications for delineation and recognition of ancestral land claims, the Ancestral Domains Office shall cause the publication of the application and a copy of each document submitted including a translation in the native language of the ICCs/IPs concerned in a prominent place therein for at least fifteen (15) days. A copy of the document shall also be posted at the local, provincial, and regional offices of the NCIP and shall be published in a newspaper of general circulation once a week for two (2) consecutive weeks to allow other claimants to file opposition thereto within fifteen (15) days from the date of such publication: Provided, That in areas where no such newspaper exists, broadcasting in a radio station will be a valid substitute: Provided, further, That mere posting shall be deemed sufficient if both newspapers and radio station are not available f. Fifteen (15) days after such publication, the Ancestral Domains Office shall investigate and inspect each application, and if found to be meritorious, shall cause a parcellary survey of the area being claimed. The Ancestral Domains office shall reject any claim that is deemed patently false or fraudulent after inspection and verification. In case of rejection, the Ancestral Domains office shall give the applicant due notice, copy furnished all concerned, containing the grounds for denial. The denial shall be appealable to the NCIP. In case of conflicting claims among individual or indigenous corporate claimants, the Ancestral domains Office shall cause the contending parties to meet and assist them in coming up with a preliminary resolution of the conflict, without prejudice to its full adjudication according to Sec. 62 of this Act. In all proceedings for the identification or delineation of the ancestral domains as herein provided, the Director of Lands shall represent the interest of the Republic of the Philippines; and g. The Ancestral Domains Office shall prepare and submit a report on each and every application surveyed and delineated to the NCIP, which shall, in turn, evaluate or corporate (family or clan) claimant over ancestral lands. Sec. 54. Fraudulent Claims.- The Ancestral Domains Office may, upon written request from the ICCs/IPs, review existing claims which have been fraudulently acquired by any person or community. Any claim found to be fraudulently acquired by, and issued to, any person or community may be cancelled by the NCIP after due notice and hearing of all parties concerned. Sec. 55. Communal Rights.- Subject to Section 56 hereof, areas within the ancestral domains, whether delineated or

not, shall be presumed to be communally held: Provide, That communal rights under this Act shall not be construed as coownership as provided in Republic Act. No. 386, otherwise known as the New Civil Code. Sec. 56. Existing Property Rights Regimes.- Property rights within the ancestral domains already existing and/or vested upon effectivity of this Act, shall be recognized and respected. Sec. 57. Natural Resources within Ancestral Domains.- The ICCs/IPs shall have the priority rights in the harvesting, extraction, development or exploitation of any natural resources within the ancestral domains. A non-member of the ICCs/IPs concerned may be allowed to take part in the development and utilization of the natural resources for a period of not exceeding twenty-five (25) years renewable for not more than twenty-five (25) years: Provided, That a formal and written agreement is entered into with the ICCs/IPs concerned or that the community, pursuant to its own decision making process, has agreed to allow such operation: Provided, finally, That the all extractions shall be used to facilitate the development and improvement of the ancestral domains. Sec. 58. Environmental Consideration.- Ancestral domains or portion thereof, which are found necessary for critical watersheds, mangroves wildlife sanctuaries, wilderness, protected areas, forest cover, or reforestation as determined by the appropriate agencies with the full participation of the ICCs/IPs concerned shall be maintained, managed and developed for such purposes. The ICCs/IPs concerned shall be given the responsibility to maintain, develop, protect and conserve such areas with the full and effective assistance of the government agencies. Should the ICCs/IPs decide to transfer the responsibility over the areas, said decision must be made in writing. The consent of the ICCs/IPs should be arrived at in accordance with its customary laws without prejudice to the basic requirement of the existing laws on free and prior informed consent: Provided, That the transfer shall be temporary and will ultimately revert to the ICCs/IPs in accordance with a program for technology transfer: Provided, further, That no ICCs/IPs shall be displaced or relocated for the purpose enumerated under this section without the written consent of the specific persons authorized to give consent. Sec. 59. Certification Precondition.- all department and other governmental agencies shall henceforth be strictly enjoined from issuing, renewing, or granting any concession, license or lease, or entering into any production-sharing agreement, without prior certification from the NCIP that the area affected does not overlap with any ancestral domain. Such certificate shall only be issued after a field-based investigation is conducted by the Ancestral Domain Office of the area concerned: Provided, That no certificate shall be issued by the NCIP without the free and prior informed and written consent of the ICCs/IPs concerned: Provided, further, That no department, government agency or government-owned or -controlled corporation may issue new concession, license, lease, or production sharing agreement while there is pending application CADT: Provided, finally, That the ICCs/IPs shall have the right to stop or suspend, in accordance with this Act, any project that has not satisfied the requirement of this consultation process. Sec.60. Exemption from Taxes.- All lands certified to be ancestral domains shall be exempt from real property taxes, specially levies, and other forms of exaction except such portion of the ancestral domains as are actually used for large-scale agriculture, commercial forest plantation and residential purposes and upon titling by other by private person: Provided, that all exactions shall be used to facilitate the development and improvement of the ancestral domains.

Sec. 61. Temporary Requisition Powers.- Prior to the establishment of an institutional surveying capacity whereby it can effectively fulfill its mandate, but in no case beyond three (3) years after its creation, the NCIP is hereby authorized to request the Department of Environment and Natural Resources (DENR) survey teams as well as other equally capable private survey teams, through a Memorandum of Agreement (MOA), to delineate ancestral domain perimeters. The DENR Secretary shall accommodate any such request within one (1) month of its issuance: Provided, That the Memorandum of Agreement shall stipulate, among others, a provision for technology transfer to the NCIP. Sec. 62. Resolution of Conflicts.- In cases of conflicting interest, where there are adverse claims within the ancestral domains as delineated in the survey plan, and which cannot be resolved, the NCIP shall hear and decide, after notice to the proper parties, the disputes arising from the delineation of such ancestral domains: Provided, That if the dispute is between and/or among ICCs/IPs regarding the traditional boundaries of their respective ancestral domains, customary process shall be followed. The NCIP shall promulgate the necessary rules and regulations to carry out its adjudicatory functions: Provided, further, That in any decision, order, award or ruling of the NCIP on any ancestral domain dispute or on any matter pertaining to the application, implementation, enforcement and interpretation of this Act may be brought for Petition for Review to the Court of Appeals within fifteen (15) days from receipt of a copy thereof. Sec. 63. Applicable Laws.- Customary laws, traditions and practices of the ICCs/IPs of the land where the conflict arises shall be applied first with respect to property rights, claims and ownerships, hereditary succession and settlement of land disputes. Any doubt or ambiguity in the application of laws shall be resolved in favor of the ICCs/IPs. Sec. 64. Remedial Measures.- Expropriation may be resorted to in the resolution of conflicts of interest following the principle of the "common good". The NCIP shall take appropriate legal action for the cancellation of officially documented titles which were acquired illegally: Provided, That such procedure shall ensure that the rights of possessors in good faith shall be respected: Provided, further, That the action for cancellation shall be initiated within two (2) years from the effectivity of this Act: Provided, finally, That the action for reconveyance shall be a period of ten (10) years in accordance with existing laws. CHAPTER IX JURISDICTION AND PROCEDURES FOR ENFORCEMENT OF RIGHTS Sec. 65. Primary of Customary Laws and Practices.- When disputes involve ICCs/IPs, customary laws and practices shall be used to resolve the dispute. Sec. 66. Jurisdiction of the NCIP.- The NCIP, through its regional offices, shall have jurisdiction over all claims and disputes involving rights of ICCs/IPs; Provided, however, That no such dispute shall be brought to the NCIP unless the parties have exhausted all remedies provided under their customary laws. For this purpose, a certification shall be issued by the Council of Elders/Leaders who participated in the attempt to settle the dispute that the same has not been resolved, which certification shall be a condition precedent to the filing of a petition with the NCIP. Sec. 67. Appeals to the Court of Appeals.- Decisions of the NCIP shall be appealable to the Court of Appeals by way of a petition for review.

Sec. 68. Execution of Decisions, Awards, Orders.- Upon expiration of the period here provided and no appeal is perfected by any of the contending parties, the Hearing Officer of the NCIP, on its own initiative or upon motion by the prevailing party, shall issue a writ of execution requiring the sheriff or the proper officer to execute final decisions, orders or awards of the Regional Hearing Officer of the NCIP. Sec. 69. Quasi-Judicial Powers of the NCIP.- The NCIP shall have the power and authority: a. To promulgate rules and regulations governing the hearing and disposition of cases filed before it as well as those pertaining to its internal functions and such rules and regulations as may be necessary to carry out the purposes of this Act; b. To administer oaths, summon the parties to a controversy, issue subpoenas requiring the attendance and testimony of witnesses or the production of such books, papers, contracts, records, agreements and other document of similar nature as may be material to a just determination of the matter under investigation or hearing conducted in pursuance of this Act; c. To hold any person in contempt, directly or indirectly, and impose appropriate penalties therefor; and d. To enjoin any or all acts involving or arising from any case pending therefore it which, if not restrained forthwith, may cause grave or irreparable damage to any of the parties to the case or seriously affect social or economic activity. Sec. 70. No restraining Order or Preliminary Injunction - No inferior court of the Philippines shall have the jurisdiction to issue any restraining order or writ of preliminary injunction against the NCIP or any of its duly authorized or designated offices in any case, dispute or controversy to, or interpretation of this Act and other pertinent laws relating to ICCs/IPs and ancestral domains. CHAPTER IX ANCESTRAL DOMAINS FUND Sec. 71. Ancestral Domains Fund.- There is hereby created a special fund, to be known as the Ancestral Domains Fund, an initial amount of the One Hundred thirty million pesos(P130,000,000) to cover compensation for expropriated lands, delineation and development of ancestral domains. An amount of Fifty million pesos (P50,000,000) shall be sourced from the gross income of the Philippine Charity Sweepstakes Office (PCSO) from its lotto operation, Ten millions pesos (P10,000,000) from the gross receipts of the travel tax of the preceding year, the fund of the Social Reform Council intended for survey and delineation of ancestral lands/domains, and such other source as the government may be deem appropriate. Thereafter such amount shall be included in the annual General Appropriations Act. Foreign as well as local funds which are made available for the ICCs/IPs through the government of the Philippines shall be coursed through the NCIP. The NCIP may also solicit and receive donations, endowments shall be exempted from income or gift taxes and all other taxes, charges or fees imposed by the government or any political subdivision or instrumentality thereof. CHAPTER XI PENALTIES Sec. 72. Punishable Acts and Applicable Penalties.- Any person who commits violation of any of the provisions of this Act, such as, but not limited to, authorized and/or unlawful intrusion upon any ancestral lands or domains as stated in Sec. 10, Chapter III, or shall commit any of the prohibited acts

mentioned in Sections 21 and 24, Chapter V, Section 33, Chapter VI hereof, shall be punished in accordance with the customary laws of the ICCs/IPs concerned: Provided, That no such penalty shall be cruel, degrading or inhuman punishment: Provided, further, That neither shall the death penalty or excessive fines be imposed. This provision shall be without prejudice to the right of any ICCs/IPs to avail of the protection of existing laws. In which case, any person who violates any provision of this Act shall, upon conviction, be punished by imprisonment of not less than nine (9) months but not more than twelve (12) years or a fine not less than One hundred thousand pesos (P100,000) nor more than Five hundred thousand pesos (P500,000) or both such fine and imprisonment upon the discretion of the court. In addition, he shall be obliged to pay to the ICCs/IPs concerned whatever damage may have been suffered by the latter as a consequence of the unlawful act. Sec. 73. Persons Subject to Punishment.- If the offender is a juridical person, all officers such as, but not limited to, its president, manager, or head of office responsible for their unlawful act shall be criminally liable therefor, in addition to the cancellation of certificates of their registration and/or license: Provided, That if the offender is a public official, the penalty shall include perpetual disqualification to hold public office.

CHAPTER XII MERGER OF THE OFFICE FOR NORTHERN CULTURAL COMMUNITIES (ONCC) AND THE OFFICE FOR SOUTHERN CULTURAL COMMUNITIES (OSCC) Sec. 74. Merger of ONCC/OSCC.- The Office for Northern Cultural Communities (ONCC) and the Office of Southern Cultural Communities (OSCC), created under Executive Order Nos. 122-B and 122-C respectively, are hereby merged as organic offices of the NCIP and shall continue to function under a revitalized and strengthened structures to achieve the objectives of the NCIP: Provided, That the positions of Regional Directors and below, are hereby phased-out upon the effectivity of this Act: Provided, further, That officials and employees of the phased-out offices who may be qualified may apply for reappointment with the NCIP and may be given prior rights in the filing up of the newly created positions of NCIP, subject to the qualifications set by the Placement Committee: Provided, furthermore, That in the case where an indigenous person and a non-indigenous person with similar qualifications apply for the same position, priority shall be given to the former. Officers and employees who are to be phased-out as a result of the merger of their offices shall be entitled to gratuity a rate equivalent to one and a half (1 1/2) months salary for every year of continuous and satisfactory service rendered or the equivalent nearest fraction thereof favorable to them on the basis of the highest salary received. If they are already entitled to retirement benefits or the gratuity herein provided. Officers and employees who may be reinstated shall refund such retirement benefits or gratuity received: Provided, finally That absorbed personnel must still meet the qualifications and standards set by the Civil Service and the Placement Committee herein created. Sec. 75. Transition Period.- The ONCC/OSCC shall have a period of six (6) months from the effectivity of this Act within which to wind up its affairs and to conduct audit of its finances. Sec. 76. Transfer of Assets/Properties.- All real and personal properties which are vested in, or belonging to, the merged offices as aforestated shall be transferred to the NCIP without further need of conveyance, transfer or assignment and shall be held for the same purpose as they were held by the former offices: Provided, That all contracts, records and documents shall be transferred to the NCIP. All agreements and contracts

entered into by the merged offices shall remain in full force and effect unless otherwise terminated, modified or amended by the NCIP.

the country. In such agreements, the State shall promote the development and use of local scientific and technical resources.

Sec. 77. Placement Committee.- Subject to rules on government reorganization, a Placement Committee shall be created by the NCIP, in coordination with the Civil Service Commission, which shall assist in the judicious selection and placement of personnel in order that the best qualified and most deserving persons shall be appointed in the reorganized agency. The placement Committee shall be composed of seven (7) commissioners and an ICCs/IPs representative from each of the first and second level employees association in the Offices for Northern and Southern Cultural Communities (ONCC/OSCC), nongovernment organizations (NGOs) who have served the community for at least five (5) years and peoples organizations (POs) with at least five (5) years of existence. They shall be guided by the criteria of retention and appointment to be prepared by the consultative body and by the pertinent provisions of the civil service law.

The President shall notify the Congress of every contract entered into in accordance with this provision, within thirty days from its execution.

Art I, Sec 21, 22 of the Constitution Section 21. The State shall promote comprehensive rural development and agrarian reform. Section 22. The State recognizes and promotes the rights of indigenous cultural communities within the framework of national unity and development. Art XII, Secs. 2, 3, 4, 5, 7 and 8 of the Constitution

ARTICLE XII: NATIONAL ECONOMY AND PATRIMONY Section 2. All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State. With the exception of agricultural lands, all other natural resources shall not be alienated. The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State. The State may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens. Such agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and under such terms and conditions as may be provided by law. In cases of water rights for irrigation, water supply fisheries, or industrial uses other than the development of water power, beneficial use may be the measure and limit of the grant. The State shall protect the nation's marine wealth in its archipelagic waters, territorial sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens. The Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens, as well as cooperative fish farming, with priority to subsistence fishermen and fishworkers in rivers, lakes, bays, and lagoons. The President may enter into agreements with foreign-owned corporations involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils according to the general terms and conditions provided by law, based on real contributions to the economic growth and general welfare of

Section 3. Lands of the public domain are classified into agricultural, forest or timber, mineral lands and national parks. Agricultural lands of the public domain may be further classified by law according to the uses to which they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands. Private corporations or associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in area. Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve hectares thereof, by purchase, homestead, or grant. Taking into account the requirements of conservation, ecology, and development, and subject to the requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public domain which may be acquired, developed, held, or leased and the conditions therefor. Section 4. The Congress shall, as soon as possible, determine, by law, the specific limits of forest lands and national parks, marking clearly their boundaries on the ground. Thereafter, such forest lands and national parks shall be conserved and may not be increased nor diminished, except by law. The Congress shall provide for such period as it may determine, measures to prohibit logging in endangered forests and watershed areas. Section 5. The State, subject to the provisions of this Constitution and national development policies and programs, shall protect the rights of indigenous cultural communities to their ancestral lands to ensure their economic, social, and cultural well-being. The Congress may provide for the applicability of customary laws governing property rights or relations in determining the ownership and extent of ancestral domain.

Section 7. Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain. Section 8. Notwithstanding the provisions of Section 7 of this Article, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law.

Republic Act No. 7942: Philippine Mining Act of 1995 Sec. 2 Declaration of Policy. All mineral resources in public and private lands within the territory and exclusive economic zone of the Republic of the Philippines are owned by the State. It shall be the responsibility of the State to promote their rational exploration, development, utilization and conservation through the combined efforts of government and the private sector in order to enhance national growth in a way that effectively safeguards the environment and protect the rights of affected communities.

Sec. 3 Definition of Terms. As used in and for purposes of this Act, the following terms, whether in singular or plural, shall mean:

(p) "Existing mining/quarrying right" means a valid and subsisting mining claim or permit or quarry permit or any mining lease contract or agreement covering a mineralized area granted/issued under pertinent mining laws.

(a) "Ancestral lands" refers to all lands, exclusively and actually possessed, occupied, or utilized by indigenous cultural communities by themselves or through their ancestors in accordance with their customs and traditions since time immemorial, and as may be defined and delineated by law.

(q) "Exploration" means the searching or prospecting for mineral resources by geological, geochemical or geophysical surveys, remote sensing, test pitting, trenching, drilling, shaft sinking, tunneling or any other means for the purpose of determining the existence, extent, quantity and quality thereof and the feasibility of mining them for profit.

(b) "Block" or "meridional block" means an area bounded by one-half (1/2) minute of latitude and one-half (1/2) minute of longitude, containing approximately eighty-one hectares (81 has.).

(r) "Financial or technical assistance agreement" means a contract involving financial or technical assistance for largescale exploration, development, and utilization of mineral resources.

(c) "Bureau" means the Mines and Geosciences Bureau under the Department of Environment and Natural Resources.

(s) "Force majeure" means acts or circumstances beyond the reasonable control of contractor including, but not limited to, war, rebellion, insurrection, riots, civil disturbance, blockade, sabotage, embargo, strike, lockout, any dispute with surface owners and other labor disputes, epidemic, earthquake, storm, flood or other adverse weather conditions, explosion, fire, adverse action by government or by any instrumentality or subdivision thereof, act of God or any public enemy and any cause that herein describe over which the affected party has no reasonable control.

(d) "Carrying capacity" refers to the capacity of natural and human environments to accommodate and absorb change without experiencing conditions of instability and attendant degradation. (e) "Contiguous zone" refers to water, sea bottom and substratum measured twenty-four nautical miles (24 n.m.) seaward from base line of the Philippine archipelago. (f) "Contract area" means land or body of water delineated for purposes of exploration, development, or utilization of the minerals found therein. (g) "Contractor" means a qualified person acting alone or in consortium who is a party to a mineral agreement or to a financial or technical assistance agreement. (h) "Co-production agreement (CA)" means an agreement entered into between the Government and one or more contractors in accordance with Section 26(b) hereof. (i) "Department" means the Department of Environment and Natural Resources. (j) "Development" means the work undertaken to explore and prepare an ore body or a mineral deposit for mining, including the construction of necessary infrastructure and related facilities. (k) "Director" means Geosciences Bureau.

the

Director

of

the

Mines

and

(l) "Ecological profile or eco-profile" refers to geographicbased instruments for planners and decision-makers which presents an evaluation of the environmental quality and carrying capacity of an area. (m) "Environmental Compliance Certificate (ECC)" refers to the document issued by the government agency concerned certifying that the project under consideration will not bring about an unacceptable environmental impact and that the proponent has complied with the requirements of the environmental impact statement system. (n) "Environmental Impact Statement (EIS)" is the document which aims to identify, predict, interpret, and communicate information regarding changes in environmental quality associated with a proposed project and which examines the range of alternatives for the objectives of the proposal and their impact on the environment. (o) "Exclusive economic zone" means the water, sea bottom and subsurface measured from the baseline of the Philippine archipelago up to two hundred nautical miles (200 n.m.) offshore.

(t) "Foreign-owned corporation" means any corporation, partnership, association, or cooperative duly registered in accordance with law in which less than fifty per centum (50%) of the capital is owned by Filipino citizens. (u) "Government" means the government of the Republic of the Philippines. (v) "Gross output" means the actual market value of minerals or mineral products from its mining area as defined in the National Internal Revenue Code. (w) "Indigenous cultural community" means a group or tribe of indigenous Filipinos who have continuously lived as communities on communally-bounded and defined land since time immemorial and have succeeded in preserving, maintaining, and sharing common bonds of languages, customs, traditions, and other distinctive cultural traits, and as may be defined and delineated by law. (x) "Joint Venture Agreement (JVA)" means an agreement entered into between the Government and one or more contractors in accordance with Section 26(c) hereof. (y) "Mineral processing" means the milling, benefaction or upgrading of ores or minerals and rocks or by similar means to convert the same into marketable products. (z) "Mine wastes and tailings" shall mean soil and rock materials from surface or underground mining and milling operations with no economic value to the generator of the same. (aa) "Minerals" refers to all naturally occurring inorganic substance in solid, gas, liquid, or any intermediate state excluding energy materials such as coal, petroleum, natural gas, radioactive materials, and geothermal energy. (ab) "Mineral agreement" means a contract between the government and a contractor, involving mineral productionsharing agreement, co-production agreement, or joint-venture agreement. (ac) "Mineral land" means any area where mineral resources are found. (ad) "Mineral resource" means any concentration minerals/rocks with potential economic value.

of

(ae) "Mining area" means a portion of the contract area identified by the contractor for purposes of development, mining, utilization, and sites for support facilities or in the immediate vicinity of the mining operations. (af) "Mining operation" means mining activities involving exploration, feasibility, development, utilization, and processing. (ag) "Nongovernmental Organization (NGO)" includes nonstock, nonprofit organizations involved in activities dealing with resource and environmental conservation, management and protection. (ah) "Net assets" refers to the property, plant and equipment as reflected in the audited financial statement of the contractor net of depreciation, as computed for tax purposes, excluding appraisal increase and construction in progress. (ai) "Offshore" means the water, sea bottom, and subsurface from the shore or coastline reckoned from the mean low tide level up to the two hundred nautical miles (200 n.m.) exclusive economic zone including the archipelagic sea and contiguous zone. (aj) "Onshore" means the landward side from the mean tide elevation, including submerged lands in lakes, rivers and creeks. (ak) "Ore" means a naturally occurring substance or material from which a mineral or element can be mined and/or processed for profit. (al) "Permittee" means the holder of an exploration permit. (am) "Pollution control and infrastructure devices" refers to infrastructure, machinery, equipment and/or improvements used for impounding, treating or neutralizing, precipitating, filtering, conveying and cleansing mine industrial waste and tailings as well as eliminating or reducing hazardous effects of solid particles, chemicals, liquids or other harmful by products and gases emitted from any facility utilized in mining operations for their disposal. (an) "President" means the President of the Republic of the Philippines. (ao) "Private land" refers to any land belonging to any private person which includes alienable and disposable land being claimed by a holder, claimant, or occupant who has already acquired a vested right thereto under the law, although the corresponding certificate or evidence of title or patent has not been actually issued. (ap) "Public land" refers to lands of the public domain which have been classified as agricultural lands and subject to management and disposition or concession under existing laws. (aq) "Qualified person" means any citizen of the Philippines with capacity to contract, or a corporation, partnership, association, or cooperative organized or authorized for the purpose of engaging in mining, with technical and financial capability to undertake mineral resources development and duly registered in accordance with law at least sixty per cent (60%) of the capital of which is owned by citizens of the Philippines: Provided, That a legally organized foreign-owned corporation shall be deemed a qualified person for purposes of granting an exploration permit, financial or technical assistance agreement or mineral processing permit. (ar) "Quarrying" means the process of extracting, removing and disposing quarry resources found on or underneath the surface of private or public land.

(as) "Quarry permit" means a document granted to a qualified person for the extraction and utilization of quarry resources on public or private lands. (at) "Quarry resources" refers to any common rock or other mineral substances as the Director of Mines and Geosciences Bureau may declare to be quarry resources such as, but not limited to, andesite, basalt, conglomerate, coral sand, diatomaceous earth, diorite, decorative stones, gabbro, granite, limestone, marble, marl, red burning clays for potteries and bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, tuff, volcanic cinders, and volcanic glass: Provided, That such quarry resources do not contain metals or metallic constituents and/or other valuable minerals in economically workable quantities: Provided, further, That nonmetallic minerals such as kaolin, feldspar, bullquartz, quartz or silica, sand and pebbles, bentonite, talc, asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica, precious and semi-precious stones, and other non-metallic minerals that may later be discovered and which the Director declares the same to be of economically workable quantities, shall not be classified under the category of quarry resources. (au) "Region director" means the regional director of any mines regional office under the Department of Environment and Natural Resources. (av) "Regional office" means any of the mines regional offices of the Department of Environment and Natural Resources. (aw) "Secretary" means the Secretary of the Department of Environment and Natural Resources. (ax) "Special allowance" refers to payment to the claimowners or surface right-owners particularly during the transition period from Presidential Decree No. 463 and Executive Order No. 279, series of 1987. (ay) "State" means the Republic of the Philippines. (az) "Utilization" means the extraction or disposition of minerals. CHAPTER II GOVERNMENT MANAGEMENT Sec. 4 Ownership of Mineral Resources. - Mineral resources are owned by the State and the exploration, development, utilization, and processing thereof shall be under its full control and supervision. The State may directly undertake such activities or it may enter into mineral agreements with contractors. The State shall recognize and protect the rights of the indigenous cultural communities to their ancestral lands as provided for by the Constitution. Sec. 5 Mineral Reservations. When the national interest so requires, such as when there is a need to preserve strategic raw materials for industries critical to national development, or certain minerals for scientific, cultural or ecological value, the President may establish mineral reservations upon the recommendation of the Director through the Secretary. Mining operations in existing mineral reservations and such other reservations as may thereafter be established, shall be undertaken by the Department or through a contractor: Provided, That a small scale mining agreement for a maximum aggregate area of twenty-five percent (25%) of such mineral reservation, subject to valid existing mining quarrying rights as provided under Section 112 Chapter XX hereof. All submerged lands within the contiguous zone and in the exclusive economic zone of the Philippines are hereby declared to be mineral reservations. A ten per centum (10%) share of all royalties and revenues to be derived by the government from the development and utilization of the mineral resources within mineral reservations as provided under this Act shall accrue to the Mines and

Geosciences Bureau to be allotted for special projects and other administrative expenses related to the exploration and development of other mineral reservations mentioned in Section 6 hereof. Sec. 6 Other Reservations. Mining operations in reserved lands other than mineral reservations may be undertaken by the Department, subject to limitations as herein provided. In the event that the Department cannot undertake such activities, they may be undertaken by a qualified person in accordance with the rules and regulations promulgated by the Secretary. The right to develop and utilize the minerals found therein shall be awarded by the President under such terms and conditions as recommended by the Director and approved by the Secretary. Provided, That the party who undertook the exploration of said reservation shall be given priority. The mineral land so awarded shall be automatically excluded from the reservation during the term of the agreement: Provided, further, That the right of the lessee of a valid mining contract existing within the reservation at the time of its establishment shall not be prejudiced or impaired.

Sec. 13 Meridional Blocks. For purposes of the delineation of the contract of mining areas under this Act, the Philippine territory and its exclusive economic zone shall be divided into meridional blocks of one-half (1/2) minute of latitude and onehalf (1/2) minute of longitude. Sec. 14 Recording System. There shall be established a national and regional filing and recording system. A mineral resource database system shall be set up in the Bureau which shall include, among others, a mineral rights management system. The Bureau shall publish at least annually, a mineral rights management system. The Bureau shall publish at least annually, a mineral gazette of nationwide circulation containing among others, a current list of mineral rights, their location in the map, mining rules and regulations, other official acts affecting mining, and other information relevant to mineral resources development. A system and publication fund shall be included in the regular budget of the Bureau. CHAPTER III SCOPE OF APPLICATION

Sec. 7 Periodic Review of Existing Mineral Reservations. The Secretary shall periodically review existing mineral reservations for the purpose of determining whether their continued existence is consistent with the national interest, and upon the recommendation, the President may, by proclamation, alter or modify the boundaries thereof or revert the same to the public domain without prejudice to prior existing rights.

Sec. 15 Scope of Application. This Act shall govern the exploration, development, utilization and processing of all mineral resources.

Sec. 8 Authority of the Department. The Department shall be the primary government agency responsible for the conservation, management, development, and proper use of the State's mineral resources including those in reservations, watershed areas, and lands of the public domain. The Secretary shall have the authority to enter into mineral agreements on behalf of the Government upon the recommendation of the Director, promulgate such rules and regulations as may be necessary to implement the intent and provisions of this Act.

Sec. 17 Royalty Payments for Indigenous Cultural Communities. In the event of an agreement with an indigenous cultural community pursuant to the preceding section, the royalty payment, upon utilization of the minerals shall be agreed upon by the parties. The said royalty shall form part of a trust fund for the socioeconomic well-being of the indigenous cultural community.

Sec. 9 Authority of the Bureau. The Bureau shall have direct charge in the administration and disposition of mineral lands and mineral resources and shall undertake geological, mining, metallurgical, chemical, and other researches as well as geological and mineral exploration surveys. The Director shall recommend to the Secretary the granting of mineral agreements to duly qualified persons and shall monitor the compliance by the contractor of the terms and conditions of the mineral agreements. The Bureau may confiscate surety, performance and guaranty bonds posted through an order to be promulgated by the Director. The Director may deputize, when necessary, any member or unit of the Philippine National Police, barangay, duly registered nongovernmental organization (NGO) or any qualified person to police all mining activities. Sec. 10 Regional Offices. There shall be as many regional offices in the country as may be established by the Secretary, upon the recommendation of the Director. Sec. 11 Processing of Applications. The system of processing applications for mining rights shall be prescribed in the rules and regulations of this Act. Sec. 12 Survey, Charting and Delineation of Mining Areas. A sketch plan or map of the contract or mining area prepared by a deputized geodetic engineer suitable for publication purposes shall be required during the filing of a mineral agreement or financial or technical assistance agreement application. Thereafter, the contract or mining area shall be surveyed and monumented by a deputized geodetic engineer or bureau geodetic engineer and the survey plan shall be approved by the Director before the approval of the mining feasibility.

Sec. 16 Opening of Ancestral Lands for Mining Operations. No ancestral land shall be opened for mining operations without the prior consent of the indigenous cultural community concerned.

Sec. 18 Areas Open to Mining Operations. Subject to any existing rights or reservations and prior agreements of all parties, all mineral resources in public or private lands, including timber or forestlands as defined in existing laws shall be open to mineral agreements or financial or technical assistance agreement applications. Any conflict that may arise under this provision shall be heard and resolved by the panel of arbitrators. Sec. 19 Areas Closed to Mining Applications. Mineral agreement or financial or technical assistance agreement applications shall not be allowed: (a) In military and other government reservations, except upon prior written clearance by the government agency concerned; (b) Near or under public or private buildings, cemeteries, archeological and historic sites, bridges, highways, waterways, railroads, reservoirs, dams or other infrastructure projects, public or private works including plantations or valuable crops, except upon written consent of the government agency or private entity concerned; (c) In areas covered by valid and existing mining rights; (d) In areas expressedly prohibited by law; (e) In areas covered by small-scale miners as defined by law unless with prior consent of the small-scale miners, in which case a royalty payment upon the utilization of minerals shall be agreed upon by the parties, said royalty forming a trust fund for the socioeconomic development of the community concerned; and (f) Old growth or virgin forests, proclaimed watershed forest reserves, wilderness areas, mangrove forests, mossy forests, national parks, provincial/municipal forests, parks, greenbelts,

game refuge and bird sanctuaries as defined by law in areas expressly prohibited under the National Integrated Protected areas System (NIPAS) under Republic Act No. 7586, Department Administrative Order No. 25, series of 1992 and other laws. CHAPTER IV EXPLORATION PERMIT

viability of a project covering a mining area may, within the term of the permit, file with the Bureau a declaration of mining project feasibility accompanied by a work program for development. The approval of the mining project feasibility and compliance with other requirements provided in this Act shall entitle the holder to an exclusive right to a mineral production sharing agreement or other mineral agreements or financial or technical assistance agreement.

Sec. 20 Exploration Permit. An exploration permit grants the right to conduct exploration for all minerals in specified areas. The Bureau shall have the authority to grant an exploration permit to a qualified person.

Sec. 25 Transfer or Assignment. An exploration permit may be transferred or assigned to a qualified person subject to the approval of the Secretary upon the recommendation of the Director.

Sec. 21 Terms and Conditions of the Exploration Permit. An exploration permit shall be for a period of two (2) years, subject to annual review and relinquishment or renewal upon the recommendation of the Director.

CHAPTER V MINERAL AGREEMENTS

Sec. 22 Maximum Areas for Exploration Permit. The maximum area that a qualified person may hold at any one time shall be: (a) Onshore, in any one province (1) For individuals, twenty (20) blocks; and (2) (2) For partnerships, corporations, associations, two hundred (200) blocks.

cooperatives,

or

(b) Onshore, in the entire Philippines (1) For individuals, forty (40) blocks; and (2) For partnerships, corporations, associations, four hundred (400) blocks.

cooperatives,

or

(c) Onshore, beyond five hundred meters (500m) from the mean low tide level (1) For individuals, one hundred (100) blocks; and (2) For partnerships, corporations, cooperatives, associations, one thousand (1,000) blocks.

or

Sec. 23 Rights and Obligations of the Permittee. An exploration permit shall grant to the permittee, his heirs or successors-in-interest, the right to enter, occupy and explore the area: Provided, That if private or other parties are affected, the permittee shall first discuss with the said parties the extent, necessity, and manner of his entry, occupation and exploration and in case of disagreement, a panel of arbitrators shall resolve the conflict or disagreement. The permittee shall undertake an exploration work on the area specified by its permit based on an approved work program. Any expenditure in excess of the yearly budget of the approved work program may be carried forward and credited to the succeeding years covering the duration of the permit. The Secretary, through the Director, shall promulgate rules and regulations governing the terms and conditions of the permit. The permittee may apply for a mineral production sharing agreement, joint venture agreement, co-production agreement or financial or technical assistance agreement over the permit area, which application shall be granted if the permittee meets the necessary qualifications and the terms and conditions of any such agreement: Provided, That the exploration period covered by the exploration permit shall be included as part of the exploration period of the mineral agreement or financial or technical assistance agreement. Sec. 24 Declaration of Mining Project Feasibility. A holder of an exploration permit who determines the commercial

Sec. 26 Modes of Mineral Agreement. For purposes of mining operations, a mineral agreement may take the following forms as herein defined: (a) Mineral production sharing agreement - is an agreement where the Government grants to the contractor the exclusive right to conduct mining operations within a contract area and shares in the gross output. The contractor shall provide the financing, technology, management and personnel necessary for the implementation of this agreement. (b) Co-production agreement - is an agreement between the Government and the contractor wherein the Government shall provide inputs to the mining operations other than the mineral resource. (c) Joint venture agreement - is an agreement where a jointventure company is organized by the Government and the contractor with both parties having equity shares. Aside from earnings in equity, the Government shall be entitled to a share in the gross output. A mineral agreement shall grant to the contractor the exclusive right to conduct mining operations and to extract all mineral resources found in the contract area. In addition, the contractor may be allowed to convert his agreement into any of the modes of mineral agreements or financial or technical assistance agreement covering the remaining period of the original agreement subject to the approval of the Secretary. Sec. 27 Eligibility. A qualified person may enter into any of the three (3) modes of mineral agreement with the government for the exploration, development and utilization of mineral resources: Provided, That in case the applicant has been in the mining industry for any length of time, he should possess a satisfactory environmental track record as determined by the Mines and Geosciences Bureau and in consultation with the Environment Management Bureau of the Department. Sec. 28 Maximum Areas for Mineral Agreement. The maximum area that a qualified person may hold at any time under a mineral agreement shall be: (a) Onshore, in any one province (1) For individuals, ten (10) blocks; and (2) For partnerships, cooperatives, corporations, one hundred (100) blocks.

associations,

or

associations,

or

(b) Onshore, in the entire Philippines (1) For individuals, twenty (20) blocks; and (2) For partnerships, cooperatives, corporations, two hundred (200) blocks. (c) Offshore, in the entire Philippines (1) For individuals, fifty (50) blocks;

(2) For partnerships, cooperatives, associations, corporations, five hundred (500) blocks; and

or

(3) For the exclusive economic zone, a larger area to be determined by the Secretary. The maximum areas mentioned above that a contractor may hold under a mineral agreement shall not include mining/quarry areas under operating agreements between the contractor and a claimowner/lessee/permittee/licensee entered into under Presidential Decree No. 463. Sec. 29 Filing and Approval of Mineral Agreements. All proposed mineral agreements shall be filed in the region where the areas of interest are located, except in mineral reservations which shall be filed with the Bureau. The filing of a proposal for a mineral agreement shall give the proponent the prior right to areas covered by the same. The proposed mineral agreement will be approved by the Secretary and copies thereof shall be submitted to the President. Thereafter, the President shall provide a list to Congress of every approved mineral agreement within thirty (30) days from its approval by the Secretary. Sec. 30 Assignment/Transfer. Any assignment or transfer of rights and obligations under any mineral agreement except a financial or technical assistance agreement shall be subject to the prior approval of the Secretary. Such assignment or transfer shall be deemed automatically approved if not acted upon by the Secretary within thirty (30) working days from official receipt thereof, unless patently unconstitutional or illegal. Sec. 31 Withdrawal from Mineral Agreements. The contractor may, by giving due notice at any time during the terms of the agreement, apply for the cancellation of the mineral agreement due to causes which, in the opinion of the contractor, make continued mining operations no longer feasible or viable. The Secretary shall consider the notice and issue its decision within a period of thirty (30) days: Provided, That the contractor has met all its financial, fiscal and legal obligations. Sec. 32 Terms. Mineral agreements shall have a term not exceeding twenty-five (25) years to start from the date of execution thereof, and renewable for another term not exceeding twenty-five (25) years under the same terms and conditions thereof, without prejudice to charges mutually agreed upon by the parties. After the renewal period, the operation of the mine may be undertaken by the Government or through a contractor. The contract for the operation of a mine shall be awarded to the highest bidder in a public bidding after due publication of the notice thereof: Provided, That the contractor shall have the right to equal the highest bid upon reimbursement of all reasonable expenses of the highest bidder. CHAPTER VI FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT Sec. 33 Eligibility. Any qualified person with technical and financial capability to undertake large-scale exploration, development, and utilization of mineral resources in the Philippines may enter into a financial or technical assistance agreement directly with the Government through the Department. Sec. 34 Maximum Contract Area. The maximum contract area that may be granted per qualified person, subject to relinquishment shall be: (a) 1,000 meridional blocks onshore; (b) 4,000 meridional blocks offshore; or (c) Combinations of (a) and (b) provided that it shall not exceed the maximum limits for onshore and offshore areas.

Sec. 35 Terms and Conditions. The following terms, conditions, and warranties shall be incorporated in the financial or technical assistance agreement, to wit: (a) A firm commitment in the form of a sworn statement, of an amount corresponding to the expenditure obligation that will be invested in the contract area: Provided, That such amount shall be subject to changes as may be provided for in the rules and regulations of this act; (b) A financial guarantee bond shall be posted in favor of the Government in an amount equivalent to the expenditure obligation of the applicant for any year. (c) Submission of proof of technical competence, such as, but not limited to, its track record in mineral resource exploration, development, and utilization; details of technology to be employed in the proposed operation; and details of technical personnel to undertake the operations; (d) Representations and warranties that the applicant has all the qualifications and none of the disqualifications for entering into the agreement; (e) Representations and warranties that the contractor has or has access to all the financing, managerial and technical expertise and, if circumstances demand, the technology required to promptly and effectively carry out the objectives of the agreement with the understanding to timely deploy these resources under its supervision pursuant to the periodic work programs and related budgets, when proper, providing an exploration period up to two (2) years, extendible for another two (2) years but subject to annual review by the Secretary in accordance with the implementing rules and regulations of this Act, and further, subject to the relinquishment obligations; (f) Representations and warranties that, except for payments for dispositions for its equity, foreign investments in local enterprises which are qualified for repartriation, and local supplier's credits and such other generally accepted and permissible financial schemes for raising funds for valid business purposes, the contractor shall not raise any form of financing from domestic sources of funds, whether in Philippine or foreign currency, for conducting its mining operations for and in the contract area; (g) The mining operations shall be conducted in accordance with the provisions of this Act and its implementing rules and regulations; (h) Work programs and minimum expenditures commitments; (i) Preferential use of local goods and services to the maximum extent practicable; (j) A stipulation that the contractors are obligated to give preference to Filipinos in all types of mining employment for which they are qualified and that technology shall be transferred to the same; (k) Requiring the prominent to effectively use appropriate anti-pollution technology and facilities to protect the environment and to restore or rehabilitate mined out areas and other areas affected by mine tailings and other forms of pollution or destruction; (l) The contractors shall furnish the Government records of geologic, accounting, and other relevant data for its mining operations, and that book of accounts and records shall be open for inspection by the government; (m) Requiring the proponent to dispose of the minerals and by products produced under a financial or technical assistance agreement at the highest price and more advantageous terms

and conditions as provided for under the rules and regulations of this Act; (n) Provide for consultation and arbitration with respect to the interpretation and implementation of the terms and conditions of the agreements; and (o) Such other terms and conditions consistent with the Constitution and with this Act as the Secretary may deem to be for the best interest of the State and the welfare of the Filipino people. Sec. 36 Negotiations. A financial or technical assistance agreement shall be negotiated by the Department and executed and approved by the President. The President shall notify Congress of all Financial or technical assistance agreements within thirty (30) days from execution and approval thereof. Sec. 37 Filing and Evaluation of Financial or Technical Assistance Agreement Proposals. All financial or technical assistance agreement proposals shall be filed with the Bureau after payment of the required processing fees. If the proposal is found to be sufficient and meritorious in form and substance after evaluation, it shall be recorded with the appropriate government agency to give the proponent the prior right to the area covered by such proposal: Provided, That existing mineral agreements, financial or technical assistance agreements and other mining rights are not impaired or prejudiced thereby. The Secretary shall recommend its approval to the President. Sec. 38 Terms of Financial or Technical Assistance Agreement. A financial or technical assistance agreement shall have a term not exceeding twenty-five (25) years to start from the execution thereof, renewable for not more than twenty-five (25) years under such terms and conditions as may be provided by law. Sec. 39 Option to Convert into a Mineral Agreement. The contractor has the option to convert the financial or technical assistance agreement to a mineral agreement at any time during the term of the agreement, if the economic viability of the contract area is found to be inadequate to justify largescale mining operations, after proper notice to the Secretary as provided for under the implementing rules and regulations: Provided, That the mineral agreement shall only be for the remaining period of the original agreement. In the case of a foreign contractor, it shall reduce its equity to forty percent (40%) in the corporation, partnership, association, or cooperative. Upon compliance with this requirement by the contractor, the Secretary shall approve the conversion and execute the mineral production-sharing agreement. Sec. 40 Assignment/Transfer. A financial or technical assistance agreement may be assigned or transferred, in whole or in part, to a qualified person subject to the prior approval of the President: Provided, That the President shall notify Congress of every financial or technical assistance agreement assigned or converted in accordance with this provision within thirty (30) days from the date of the approval thereof. Sec. 41 Withdrawal from Financial or Technical Assistance Agreement. The contractor shall manifest in writing to the Secretary his intention to withdraw from the agreement, if in his judgement the mining project is no longer economically feasible, even after he has exerted reasonable diligence to remedy the cause or the situation. The Secretary may accept the withdrawal: Provided, That the contractor has complied or satisfied all his financial, fiscal or legal obligations. CHAPTER VII SMALL-SCALE MINING

Sec. 42 Small-scale Mining. Small-scale mining shall continue to be governed by Republic Act No. 7076 and other pertinent laws. CHAPTER VIII QUARRY RESOURCES Sec. 43 Quarry Permit. Any qualified person may apply to the provincial/city mining regulatory board for a quarry permit on privately-owned lands and/or public lands for building and construction materials such as marble, basalt, andesite, conglomerate, tuff, adobe, granite, gabbro, serpentine, inset filing materials, clay for ceramic tiles and building bricks, pumice, perlite and other similar materials that are extracted by quarrying from the ground. The provincial governor shall grant the permit after the applicant has complied with all the requirements as prescribed by the rules and regulations. The maximum area which a qualified person may hold at any one time shall be five hectares (5 has.): Provided, That in large-scale quarry operations involving cement raw materials, marble, granite, sand and gravel and construction agreements, a qualified person and the government may enter into a mineral agreement as defined herein. A quarry permit shall have a term of five (5) years, renewable for like periods but not to exceed a total term of twenty-five (25) years, No quarry permit shall be issued or granted on any area covered by a mineral agreement, or financial or technical assistance agreement. Sec. 44 Quarry Fee and Taxes. A permittee shall, during the term of his permit, pay a quarry fee as provided for under the implementing rules and regulations. The permittee shall also pay the excise tax as provided by pertinent laws. Sec. 45 Cancellation of Quarry Permit. A quarry permit may be cancelled by the provincial governor for violations of the provisions of this Act or its implementing rules and regulations or the terms and conditions of said permit: Provided, That before the cancellation of such permit, the holder thereof shall be given the opportunity to be heard in an investigation conducted for the purpose. Sec. 46 Commercial Sand and Gravel Permit. Any qualified person may be granted a permit by the provincial governor to extract and remove sand and gravel or other loose or unconsolidated materials which are used in their natural state, without undergoing processing from an area of not more than five hectares (5 has.) and in such quantities as may be specified in the permit. Sec. 47 Industrial Sand and Gravel Permit. Any qualified person may be granted an industrial sand and gravel permit by the Bureau for the extraction of sand and gravel and other loose or unconsolidated materials that necessitate the use of mechanical processing covering an area of more than five hectares (5 has.) at any one time. The permit shall have a term of five (5) years, renewable for a like period but not to exceed a total term of twenty-five (25) years. Sec. 48 Exclusive Sand and Gravel Permit. Any qualified person may be granted an exclusive sand and gravel permit by the provincial governor to quarry and utilize sand and gravel or other loose or unconsolidated materials from public lands for his own use, provided that there will be no commercial disposition thereof. A mineral agreement or a financial technical assistance agreement contractor shall, however, have the right to extract and remove sand and gravel and other loose unconsolidated materials without need of a permit within the area covered by the mining agreement for the exclusive use in the mining operations: Provided, That monthly reports of the quantity of materials extracted therefrom shall be submitted to the mines regional office concerned: Provided, further, That said right shall be coterminous with the expiration of the agreement.

Holders of existing mining leases shall likewise have the same rights as that of a contractor: Provided, That said right shall be coterminous with the expiry dates of the lease. Sec. 49 Government Gratuitous Permit. Any government entity or instrumentality may be granted a gratuitous permit by the provincial governor to extract sand and gravel, quarry or loose unconsolidated materials needed in the construction of building and/or infrastructure for public use or other purposes over an area of not more than two hectares (2 has.) for a period coterminous with said construction. Sec. 50 Private Gratuitous Permit. Any owner of land may be granted a private gratuitous permit by the provincial governor. Sec. 51 Guano Permit. Any qualified person may be granted a guano permit by the provincial governor to extract and utilize loose unconsolidated guano and other organic fertilizer materials in any portion of a municipality where he has established domicile. The permit shall be for specific caves and/or for confined sites with locations verified by the Department's field officer in accordance with existing rules and regulations. Sec. 52 Gemstone Gathering Permit. Any qualified person may be granted a non-exclusive gemstone gathering permit by the provincial governor to gather loose stones useful as gemstones in rivers and other locations. CHAPTER IX TRANSPORT, SALE AND PROCESSING OF MINERALS Sec. 53 Ore Transport Permit. A permit specifying the origin and quantity of non-processed mineral ores or minerals shall be required for their transport. Transport permits shall be issued by the mines regional director who has jurisdiction over the area where the ores were extracted. In the case of mineral ores or minerals being transported from the smallscale mining areas to the custom mills or processing plants, the Provincial Mining Regulatory Board (PMRB) concerned shall formulate their own policies to govern such transport of ores produced by small-scale miners. The absence of a permit shall be considered as prima facie evidence of illegal mining and shall be sufficient cause for the Government to confiscate the ores or minerals being transported, the tools and equipment utilized, and the vehicle containing the same. Ore samples not exceeding two metric tons (2 m.t.) to be used exclusively for assay or pilot test purposes shall be exempted from such requirement. Sec. 54 Mineral Trading Registration. No person shall engage in the trading of mineral products, either locally or internationally, unless registered with the Department of Trade and Industry and accredited by the Department, with a copy of said registration submitted to the Bureau. Sec. 55 Minerals Processing Permit. No person shall engage in the processing of minerals without first securing a minerals processing permit from the Secretary. Minerals processing permit shall be for a period of five (5) years renewable for like periods but not to exceed a total term of twenty-five (25) years. In the case of mineral ores or minerals produced by the small-scale miners, the processing thereof as well as the licensing of their custom mills, or processing plants shall continue to be governed by the provisions of Republic Act No. 7076. Sec. 56 Eligibility of Foreign-owned/-controlled Corporation. A foreign-owned/-controlled corporation may be granted a mineral processing permit. CHAPTER X DEVELOPMENT OF MINING AND MINING TECHNOLOGY

COMMUNITIES,

SCIENCE

Sec. 57 Expenditure for Community Development and Science and Mining Technology. A contractor shall assist in the development of its mining community, the promotion of the general welfare of its inhabitants, and the development of science and mining technology. Sec. 58 Credited Activities. Activities that may be credited as expenditures for development of mining communities, and science and mining technology are the following: (a) Any activity or expenditure intended to enhance the development of the mining and neighboring communities of a mining operation other than those required or provided for under existing laws, or collective bargaining agreements, and the like: and (b) Any activity or expenditure directed towards the development of geosciences and mining technology such as, but not limited to, institutional and manpower development, and basic and applied researches. Appropriate supervision and control mechanisms shall be prescribed in the implementing rules and regulations of this Act. Sec. 59 Training and Development. A contractor shall maintain an effective program of manpower training and development throughout the term of the mineral agreement and shall encourage and train Filipinos to participate in all aspects of the mining operations, including the management thereof. For highly-technical and specialized mining operations, the contractor may, subject to the necessary government clearances, employ qualified foreigners. Sec. 60 Use of Indigenous Goods, Services and Technologies. A contractor shall give preference to the use of local goods, services and scientific and technical resources in the mining operations, where the same are of equivalent quality, and are available on equivalent terms as their imported counterparts. Sec. 61 Donations/Turn Over of Facilities. Prior to cessation of mining operations occasioned by abandonment or withdrawal of operations, on public lands by the contractor, the latter shall have a period of one (1) year therefrom within which to remove his improvements; otherwise, all the social infrastructure and facilities shall be turned over or donated tax-free to the proper government authorities, national or local, to ensure that said infrastructure and facilities are continuously maintained and utilized by the host and neighboring communities. Sec. 62 Employment of Filipinos. A contractor shall give preference to Filipino citizens in all types of mining employment within the country insofar as such citizens are qualified to perform the corresponding work with reasonable efficiency and without hazard to the safety of the operations. The contractor, however, shall not be hindered from hiring employees of his own selection, subject to the provision of Commonwealth Act No. 613, as amended, for technical and specialized work which in his judgement and with the approval of the Director, required highly-specialized training or long experience in exploration, development or utilization of mineral resources: Provided, That in no case shall each employment exceed five (5) years or the payback period as represented in original project study, whichever is longer: Provided, further, That each foreigner employed as mine manager, vice-president for operations or in an equivalent managerial position in charge of mining, milling, quarrying or drilling operation shall: (a) Present evidence of his qualification and work experience; or (b) Shall pass examination; or

the

appropriate

government

licensure

(c) In special cases, may be permitted to work by the Director for a period not exceeding one (1) year: Provided, however, That if reciprocal privileges are extended to Filipino nationals

in the country of domicile, the Director may grant waivers or exemptions. CHAPTER XI SAFETY AND ENVIRONMENTAL PROTECTION Sec. 63 Mines Safety and Environmental Protection. All contractors and permittees shall strictly comply with all the mines safety rules and regulations as may be promulgated by the Secretary concerning the safe and sanitary upkeep of the mining operations and achieve waste-free and efficient mine development. Personnel of the Department involved in the implementation of mines safety, health and environmental rules and regulations shall be covered under Republic Act No. 7305. Sec. 64 Mine Labor. No person under sixteen (16) years of age shall be employed in any phase of mining operations and no person under eighteen (18) years of age shall be employed underground in a mine. Sec. 65 Mine Supervision. All mining and quarrying operations that employ more than fifty (50) workers shall have at least one (1) licensed mining engineer with at least five (5) years of experience in mining operations, and one (1) registered foreman. Sec. 66 Mine Inspection. The regional director shall have exclusive jurisdiction over the safety inspection of all installations, surface or underground, in mining operations at reasonable hours of the day or night and as much as possible in a manner that will not impede or obstruct work in progress of a contractor or permittee. Sec. 67 Power to Issue Orders. The mines regional director shall, in consultation with the Environmental Management Bureau, forthwith or within such time as specified in his order, require the contractor to remedy any practice connected with mining or quarrying operations, which is not in accordance with safety and anti-pollution laws and regulations, which is not in accordance with safety and anti-pollution laws and regulations. In case of imminent danger to life or property, the mines regional director may summarily suspend the mining or quarrying operations until the danger is removed, or appropriate measures are taken by the contractor or permittee. Sec. 68 Report of Accidents. In case of any incident or accident, causing or creating the danger of loss of life or serious physical injuries, the person in charge of operations shall immediately report the same to the regional office where the operations are situated. Failure to report the same without justifiable reason shall be a cause for the imposition of administrative sanctions prescribed in the rules and regulations implementing this Act. Sec. 69 Environmental Protection. Every contractor shall undertake an environmental protection and enhancement program covering the period of the mineral agreement or permit. Such environmental program shall be incorporated in the work program which the contractor or permittee shall submit as an accompanying document to the application for a mineral agreement or permit. The work program shall include not only plans relative to mining operations but also to rehabilitation, regeneration, revegetation and reforestation of mineralized areas, slope stabilization of mined-out and tailings covered areas, aquaculture, watershed development and water conservation; and socioeconomic development. Sec. 70 Environmental Impact Assessment (EIA). Except during the exploration period of a mineral agreement or financial or technical assistance agreement or an exploration permit, an environmental clearance certificate shall be required based on an environmental impact assessment and procedures under the Philippine Environmental Impact Assessment System including Sections 26 and 27 of the Local Government Code of 1991 which require national government

agencies to maintain ecological balance, and prior consultation with the local government units, nongovernmental and people's organizations and other concerned sectors of the community: Provided, That a completed ecological profile of the proposed mining area shall also constitute part of the environmental impact assessment. People's organizations and non-governmental organizations shall be allowed and encourage to participate in ensuring that contractors/permittees shall observe all the requirements of environmental protection. Sec. 71 Rehabilitation. Contractors and permittees shall technically and biologically rehabilitate the excavated minedout, tailings covered and disturbed areas to the condition of environmental safety, as may be provided in the implementing rules and regulations of this Act. A mine rehabilitation fund shall be created, based on the contractor's approved work program, and shall be deposited as a trust fund in a government depository bank and used for physical and social rehabilitation of areas and communities affected by mining activities and for research on the social, technical and preventive aspects of rehabilitation. Failure to fulfill the above obligation shall mean immediate suspension or closure of the mining activities of the contractor/permittee concerned. CHAPTER XII AUXILIARY MINING RIGHTS Sec. 72 Timber Rights. Any provision of law to the contrary notwithstanding, a contractor may be ranged a right to cut trees or timber within his mining area as may be necessary for his mining operations subject to forestry laws, rules and regulations: Provided, That if the land covered by the mining area is already covered by existing timber concessions, the volume of timber needed and the manner of cutting and removal thereof shall be determined by the mines regional director, upon consultation with the contractor, the timber concessionaire/permittee and the Forest Management Bureau of the Department: Provided, further, That in case of disagreement between the contractor and the timber concessionaire, the matter shall be submitted to the Secretary whose decision shall be final. The contractor shall perform reforestation work within his mining area in accordance with forestry laws, rules and regulations. Sec. 73 Water Rights. A contractor shall have water rights for mining operations upon approval of application with the appropriate government agency in accordance with existing water laws, rules and regulations promulgated thereunder: Provided, That water rights already granted or vested through long use, recognized and acknowledged by local customs, laws, and decisions of courts shall not thereby be impaired: Provided further, That the Government reserves the right to regulate water rights and the reasonable and equitable distribution of water supply so as to prevent the monopoly of the use thereof. Sec. 74 Right to Possess Explosives. A contractor/ exploration permittee shall have the right to possess and use explosives within his contract/permit area as may be necessary for his mining operations upon approval of an application with the appropriate government agency in accordance with existing laws, rules and regulations promulgated thereunder: Provided, That the Government reserves the right to regulate and control the explosive accessories to ensure safe mining operations. Sec. 75 Easement Rights. When mining areas are so situated that for purposes of more convenient mining operations it is necessary to build, construct or install on the mining areas or lands owned, occupied or leased by other persons, such infrastructure as roads, railroads, mills, waste dump sites, tailings ponds, warehouses, staging or storage areas and port facilities, tramways, runways, airports, electric transmission, telephone or telegraph lines, dams and their normal flood and catchment areas, sites for water wells, ditches, canals, new river beds, pipelines, flumes, cuts, shafts, tunnels, or mills, the

contractor, upon payment of just compensation, shall be entitled to enter and occupy said mining areas or lands. Sec. 76 Entry into Private Lands and Concession Areas. Subject to prior notification, holders of mining rights shall not be prevented from entry into private lands and concession areas by surface owners, occupants, or concessionaires when conducting mining operations therein: Provided, That any damage done to the property of the surface owner, occupant, or concessionaire as a consequence of such operations shall be properly compensated as may be provided for in the implementing rules and regulations: Provided, further, That to guarantee such compensation, the person authorized to conduct mining operation shall, prior thereto, post a bond with the regional director based on the type of properties, the prevailing prices in and around the area where the mining operations are to be conducted, with surety or sureties satisfactory to the regional director. CHAPTER XIII SETTLEMENT OF CONFLICTS Sec. 77 Panel of Arbitrators. There shall be a panel of arbitraters in the regional office of the Department composed of three (3) members, two (2) of whom must be members of the Philippine Bar in good standing and one licensed mining engineer or a professional in a related field, and duly designated by the Secretary as recommended by the Mines and Geosciences Bureau Director. Those designated as members of the panel shall serve as such in addition to their work in the Department without receiving any additional compensation. As much as practicable, said members shall come from the different bureaus of the Department in the region. The presiding officer shall be on a yearly basis. The members of the panel shall perform their duties and obligations in hearing and deciding cases until their designation is withdrawn or revoked by the Secretary. Within thirty (30) working days, after the submission of the case by the parties for decision, the panel shall have exclusive and original jurisdiction to hear and decide on the following: (a) Disputes involving rights to mining areas; (b) Disputes involving mineral agreements or permits; (c) Disputes involving surface claimholders/concessionaires; and

owners,

occupants

and

(d) Disputes pending before the Bureau and the Department at the date of the effectivity of this Act. Sec. 78 Appellate Jurisdiction. The decision or order of the panel of arbitrators may be appealed by the party not satisfied thereto to the mines Adjudication Board within fifteen (15) days from receipt thereof which must decide the case within thirty (30) days from submission thereof for decision. Sec. 79 Mines Adjudication Board. The Mines Adjudication Board shall be composed of three (3) members. The Secretary shall be the chairman with the Director of the Mines and Geosciences Bureau and the Undersecretary for Operations of the Department as member thereof. The Board shall have the following powers and functions: (a) To promulgate rules and regulations governing the hearing and disposition of cases before it, as well as those pertaining to its internal functions, and such rules and regulations as may be necessary to carry out its functions; (b) To administer oaths, summon the parties to a controversy, issue subpoenas requiring the attendance and testimony of witnesses or the production of such books, paper, contracts, records, statement of accounts, agreements, and other documents as may be material to a just determination of the matter under investigation, and to testify in any investigation or hearing conducted in pursuance of this Act;

(c) To conduct hearings on all matters within its jurisdiction, proceed to hear and determine the disputes in the absence of any party thereto who has been summoned or served with notice to appear, conduct its proceedings or any part thereof in public or in private, adjourn its hearings at any time and place, refer technical matters or accounts to an expert and to accept his report as evidence after hearing of the parties upon due notice, direct parties to be joined in or excluded from the proceedings, correct, amend, or waive any error, defect or irregularity, whether in substance or in form, give all such directions at it may deem necessary or expedient in the determination of the dispute before it and dismiss the mining dispute as part thereof, where it is trivial or where further proceedings by the Board are not necessary or desirable; (1) to hold any person in contempt, directly or indirectly, and impose appropriate penalties therefor; and (2) To enjoin any or all acts involving or arising from any case pending before it which, if not restrained forthwith, may cause grave or irreparable damage to any of the parties to the case or seriously affect social and economic stability. In any proceeding before the Board, the rules of evidence prevailing in courts of law or equity shall not be controlling and it is the spirit and intention of this Act that shall govern. The Board shall use every and all reasonable means to ascertain the facts in each case speedily and objectively and without regard to technicalities of law or procedure, all in the interest of due process. In any proceeding before the Board, the parties may be represented by legal counsel. the findings of fact of the Board shall be conclusive and binding on the parties and its decision or order shall be final and executory. A petition for review by certiorari and question of law may be filed by the aggrieved party with the Supreme Court within thirty (30) days from receipt of the order or decision of the Board. CHAPTER XIV GOVERNMENT SHARE Sec. 80 Government Share in Mineral Production Sharing Agreement. The total government share in a mineral production sharing agreement shall be the excise tax on mineral products as provided in Republic Act No. 7729, amending Section 151(a) of the National Internal Revenue Code, as amended. Sec. 81 Government Share in Other Mineral Agreements. The share of the Government in co-production and joint-venture agreements shall be negotiated by the Government and the contractor taking into consideration the: (a) capital investment of the project, (b) risks involved, (c) contribution of the project to the economy, and (d) other factors that will provide for a fair and equitable sharing between the Government and the contractor. The Government shall also be entitled to compensations for its other contributions which shall be agreed upon by the parties, and shall consist, among other things, the contractor's income tax, excise tax, special allowance, withholding tax due from the contractor's foreign stockholders arising from dividend or interest payments to the said foreign stockholders, in case of a foreign national, and all such other taxes, duties and fees as provided for under existing laws. The Government share in financial or technical assistance agreement shall consist of, among other things, the contractor's corporate income tax, excise tax, special allowance, withholding tax due from the contractor's foreign stockholders arising from dividend or interest payments to the said foreign stockholder in case of a foreign national and all such other taxes, duties and fees as provided for under existing laws.

The collection of government share in financial or technical assistance agreement shall commence after the financial or technical assistance agreement contractor has fully recovered its pre-operating expenses, exploration, and development expenditures, inclusive. Sec. 82 Allocation of Government Share. The Government share as referred to in the preceding sections shall be shared and allocated in accordance with Sections 290 and 292 of Republic Act No. 7160 otherwise known as the Local Government Code of 1991. In case the development and utilization of mineral resources is undertaken by a government-owned or controlled corporation, the sharing and allocation shall be in accordance with Sections 291 and 292 of the said Code. CHAPTER XV TAXES AND FEES Sec. 83 Income Taxes. After the lapse of the income tax holiday as provided for in the Omnibus Investments Code, the contractor shall be liable to pay income tax as provided in the National Internal Revenue Code, as amended. Sec. 84 Excise Tax on Mineral Products. The contractor shall be liable to pay the excise tax on mineral products as provided for under Section 151 of the National Internal Revenue Code: Provided, however, That with respect to a mineral production sharing agreement, the excise tax on mineral products shall be the government share under said agreement. Sec. 85 Mine Wastes and Tailings Fees. A semi-annual fee to be known as mine wastes and tailings fee is hereby imposed on all operating mining companies in accordance with the implementing rules and regulations. The mine wastes and tailings fee shall accrue to a reserve fund to be used exclusively for payment for damages to: (a) Lives and personal safety; (b) Lands, agricultural crops and forest products, marine life and aquatic resources, cultural resources; and (c) Infrastructure and the revegetation and rehabilitation of silted farm lands and other areas devoted to agriculture and fishing caused by mining pollution. This is in addition to the suspension or closure of the activities of the contractor at any time and the penal sanctions imposed upon the same. The Secretary is authorized to increase mine wastes and tailings fees, when public interest so requires, upon the recommendation of the Director. Sec. 86 Occupation Fees. There shall be collected from any holder of a mineral agreement, financial or technical assistance agreement or exploration permit on public or private lands, an annual occupation fee in accordance with the following schedule; (a) For exploration permit - Five pesos (P5.00) per hectare or fraction thereof per annum; (b) For mineral agreements and financial or technical assistance agreements - Fifty pesos (P50.00) per hectare or fraction thereof per annum; and (c) For mineral reservation - One hundred pesos (P100.00) per hectare or fraction thereof per annum. The Secretary is authorized to increase the occupation fees provided herein when the public interest so requires, upon recommendation of the Bureau Director. Sec. 87 Manner of payment of Fees. The fees shall be paid on the date the mining agreement is registered with the appropriate office and on the same date every year

thereafter. It shall be paid to the treasurer of the municipality or city where the onshore mining areas are located, or to the Director in case of offshore mining areas. For this purpose, the appropriate officer shall submit to the treasurer of the municipality or city where the onshore mining area is located, a complete list of all onshore mining rights registered with his office, indicating therein the names of the holders, area in hectares, location, and date registered. If the fee is not paid on the date specified, it shall be increased by twenty-five per centum (25%). Sec. 88 Allocation of Occupation Fees. Thirty per centum (30%) of all occupational fees collected from holders of mining rights in onshore mining areas shall accrue to the province and seventy per centum (70%) to the municipality in which the onshore mining areas are located. In a chartered city, the full amount shall accrue to the city concerned. Sec. 89 Filing Fees and Other Charges. The Secretary is authorized to charge reasonable filing fees and other charges as he may prescribe in accordance with the implementing rules and regulations. CHAPTER XVI INCENTIVES Sec. 90 Incentives. The contractors in mineral agreements, and financial or technical assistance agreements shall be entitled to the applicable fiscal and non-fiscal incentives as provided for under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987: Provided, That holders of exploration permits may register with the Board of Investments and be entitled to the fiscal incentives granted under the said Code for the duration of the permits or extensions thereof: Provided, further, That mining activities shall always be included in the investment priorities plan. Sec. 91 Incentives for Pollution Control Devices. Pollution control devices acquired, constructed or installed by contractors shall not be considered as improvements on the land or building where they are placed, and shall not be subject to real property and other taxes or assessments: Provided, however, That payment of mine wastes and tailings fees is not exempted. Sec. 92 Income Tax-Carry Forward of Losses. A net operating loss without the benefit of incentives incurred in any of the first ten (10) years of operations may be carried over as a deduction from taxable income for the next five (5) years immediately following the year of such loss. The entire amount of the loss shall be carried over to the first of the five (5) taxable years following the loss, and any portion of such loss which exceeds the taxable income of such first year shall be deducted in like manner from the taxable income of the next remaining four (4) years. Sec. 93 Income Tax-Accelerated Depreciation. Fixed assets may be depreciated as follows: (a) To the extent of not more than twice as fast as the normal rate of depreciation or depreciated at normal rate of depreciation if the expected life is ten (10) years or less; or (b) Depreciated over any number of years between five (5) years and the expected life if the latter is more than ten (10) years, and the depreciation thereon allowed as deduction from taxable income: Provided, That the contractor notifies the Bureau of Internal Revenue at the beginning of the depreciation period which depreciation rate allowed by this section will be used. In computing for taxable income, unless otherwise provided in this Act, the contractor may, at his option, deduct exploration and development expenditures accumulated at cost as of the date of the prospecting or exploration and development expenditures paid or incurred during the taxable year: Provided, That the total amount deductible for exploration and

development expenditures shall not exceed twenty-five per centum (25%) of the net income from mining operations. The actual exploration and development expenditures minus the twenty-five per centum (25%) net income from mining shall be carried forward to the succeeding years until fully deducted. Net income from mining operation is defined as gross income from operations less allowable deductions which are necessary or related to mining operations. Allowable deductions shall include mining, milling and marketing expenses, depreciation or properties directly used in the mining operations. This paragraph shall not apply to expenditures for the acquisition or improvement of property of a character which is subject to the allowances for depreciation. Sec. 94 Investment Guarantees. The contractor shall be entitled to the basic rights and guarantees provided in the Constitution and such other rights recognized by the government as enumerated hereunder. (a) Repatriation of investments. The right to repatriate the entire proceeds of the liquidation of the foreign investment in the currency in which the investment was originally made and at the exchange rate prevailing at the time of repatriation. (b) Remittance of earnings. The right to remit earnings from the investment in the currency in which the foreign investment was originally made at the exchange rate prevailing at the time of remittance. (c) Foreign loans and contracts. The right to remit at the exchange rate prevailing at the time of remittance such sums as may be necessary to meet the payments of interest and principal on foreign loans and foreign obligations arising from financial or technical assistance contracts. (d) Freedom from expropriation. The right to be free from expropriation by the government of the property represented by investments or loans, or of the property of the enterprise except for public use or in the interest of national welfare or defense and upon payment of just compensation. In such cases, foreign investors or enterprises shall have the right to remit sums received as compensation for the expropriated property in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance. (e) Requisition of investment. The right to be free from requisition of the property represented by the investment or of the property of the enterprises except in case of war or national emergency and only for the duration thereof. Just compensation shall be determined and paid either at the time or immediately after cessation of the state of war or national emergency. Payments received as compensation for the requisitioned property may be remitted in the currency in which the investments were originally made and at the exchange rate prevailing at the time of remittance. (f) Confidentiality. Any confidential information supplied by the contractor pursuant to this Act and its implementing rules and regulations shall be treated as such by the department and the Government, and during the term of the project to which it relates. CHAPTER XVII GROUND FOR TERMINATION

CANCELLATION,

REVOCATION,

AND

Sec. 95 Late or Non-filing of Requirements. Failure of the permittee or contractor to comply with any of the requirements provided in this Act or in its implementing rules and regulations, without a valid reason, shall be sufficient ground from the suspension of any permit or agreement provided under this Act.

Sec. 96 Violation of the Terms and Conditions of Permits or Agreements. Violations of the terms and conditions of the permits or agreements shall be a sufficient ground for cancellation of the same. Sec. 97 Non-payment of taxes and Fees. Failure to pay the taxes and fees due the Government for two (2) consecutive years shall cause the cancellation of the exploration permit, mineral agreement, financial or technical assistance agreement and other agreements and the re-opening of the area subject thereof to new applicants. Sec. 98 Suspension or Cancellation of Tax Incentives and Credits. Failure to abide by the terms and conditions of tax incentives and credits shall cause the suspension or cancellation of said incentives and credits. Sec. 99 Falsehood or Omission of Facts in the Statement. All statements made in the exploration permit, mining agreement and financial or technical assistance shall be considered as conditions and essential parts thereof and any falsehood in said statements or omission of facts therein which may alter, change or affect substantially the facts set forth in said statements may cause the revocation and termination of the exploration permit, mining agreement and financial or technical assistance agreement. CHAPTER XVIII ORGANIZATIONAL AND INSTITUTIONAL ARRANGEMENT Sec. 100 From Staff Bureau to Line Bureau. The Mines and Geosciences Bureau is hereby transformed into a line bureau consistent with Section 9 of this Act: Provided, That under the Mines and Geosciences Bureau shall be the necessary mines regional, district and other pertinent offices - the number and specific functions of which shall be provided in the implementing rules and regulations of this Act. CHAPTER XIX PENAL PROVISIONS Sec. 101 False Statements. Any person who knowingly presents any false application, declaration, or evidence to the Government or publishes or causes to be published any prospectus or other information containing any false statement relating to mines, mining operations or mineral agreements, financial or technical assistance agreements and permits shall, upon conviction, be penalized by a fine of not exceeding Ten Thousand Pesos (P10,000.00). Sec. 102 Illegal Exploration. Any person undertaking exploration work without the necessary exploration permit shall, upon conviction, be penalized by a fine of not exceeding Fifty thousand pesos (P50,000.00). Sec. 103 Theft of Minerals. Any person extracting minerals and disposing the same without a mining agreement, lease, permit, license, or steals minerals or ores or the products thereof from mines or mills or processing plants shall, upon conviction, be imprisoned from six (6) months to six (6) years or pay a fine from Ten thousand pesos (P10,000.00) to Twenty thousand pesos (P20,000.00), or both, at the discretion of the appropriate court. In addition, he shall be liable to pay damages and compensation for the minerals removed, extracted, and disposed of. In the case of associations, partnerships, or corporations, the president and each of the directors thereof shall be responsible for the acts committed by such association, corporation, or partnership. Sec. 104 Destruction of Mining Structures. Any person who willfully destroys or damages structures in or on the mining area or on the mill sites shall, upon conviction, be imprisoned for a period not to exceed five (5) years and shall, in addition, pay compensation for the damages which may have been caused thereby.

Sec. 105 Mines Arson. Any person who willfully sets fire to any mineral stockpile, mine or workings, fittings or a mine, shall be guilty of arson and shall be punished, upon conviction, by the appropriate court in accordance with the provisions of the Revised Penal Code and shall, in addition, pay compensation for the damages caused thereby. Sec. 106 Willful Damage to a Mine. Any person who willfully damages a mine, unlawfully causes water to run into a mine, or obstructs any shaft or passage to a mine, or renders useless, damages or destroys any machine, appliance, apparatus; rope, chain, tackle, or any other things used in a mine, shall be punished, upon conviction, by the appropriate court, by imprisonment not exceeding a period of five (5) years and shall, in addition, pay compensation for the damages caused thereby. Sec. 107 Illegal Obstruction to Permittees or Contractors. Any person who, without justifiable cause, prevents or obstructs the holder of any permit, agreement or lease from undertaking his mining operations shall be punished, upon conviction by the appropriate court, by a fine not exceeding Five thousand pesos (P5,000.00) or imprisonment not exceeding one (1) year, or both, at the discretion of the court. Sec. 108 Violation of the Terms and Conditions of the Environmental Compliance Certificate. Any person who willfully violates or grossly neglects to abide by the terms and conditions of the environmental compliance certificate issued to said person and which causes environmental damage through pollution shall suffer the penalty of imprisonment of six (6) months to six (6) years or a fine of Fifty thousand pesos (P50,000.00) to Two Hundered Thousand Pesos (P200,000.00), or both at the discretion of the court. Sec. 109 Illegal Obstruction to Government Officials. Any person who illegally prevents or obstructs the Secretary, the Director or any of their representatives in the performance of their duties under the provisions of this Act and of the regulations promulgated hereunder shall be punished, upon conviction, by the appropriate court, by a fine not exceeding Five thousand pesos (P5,000.00) or by imprisonment not exceeding one (1) year, or both, at the discretion of the court. Sec. 110 Other Violations. Any other violation of this Act and its implementing rules and regulations shall constitute an offense punishable with a fine not exceeding five thousand pesos (P5,000.00). Sec. 111 Fines. The Secretary is authorized to charge fines for late or nonsubmission of reports in accordance with the implementing rules and regulations of this Act REPUBLIC ACT NO. 7076: People's Small-scale Mining Act Sec. 2. Declaration of Policy. — It is hereby declared of the State to promote, develop, protect and rationalize viable small-scale mining activities in order to generate more employment opportunities and provide an equitable sharing of the nation's wealth and natural resources, giving due regard to existing rights as herein provided. Sec. 3. Definitions. — For purposes of this Act, the following terms shall be defined as follows: (a) "Mineralized areas" refer to areas with naturally occurring mineral deposits of gold, silver, chromite, kaolin, silica, marble, gravel, clay and like mineral resources; (b) "Small-scale mining" refers to mining activities which rely heavily on manual labor using simple implement and methods and do not use explosives or heavy mining equipment;

(c) "Small-scale miners" refer to Filipino citizens who, individually or in the company of other Filipino citizens, voluntarily form a cooperative duly licensed by the Department of Environment and Natural Resources to engage, under the terms and conditions of a contract, in the extraction or removal of minerals or ore-bearing materials from the ground; (d) "Small-scale mining contract" refers to co-production, joint venture or mineral production sharing agreement between the State and a small-scale mining contractor for the smallscale utilization of a plot of mineral land; (e) "Small-scale mining contractor" refers to an individual or a cooperative of small-scale miners, registered with the Securities and Exchange Commission or other appropriate government agency, which has entered into an agreement with the State for the small-scale utilization of a plot of mineral land within a people's small-scale mining area; (f) "Active mining area" refers to areas under actual exploration, development, exploitation or commercial production as determined by the Secretary after the necessary field investigation or verification including contiguous and geologically related areas belonging to the same claimowner and/or under contract with an operator, but in no case to exceed the maximum area allowed by law; (g) "Existing mining right" refers to perfected and subsisting claim, lease, license or permit covering a mineralized area prior to its declaration as a people's small-scale mining area; (h) "Claimowner" refers to a holder of an existing mining right; (i) "Processor" refers to a person issued a license to engage in the treatment of minerals or ore-bearing materials such as by gravity concentration, leaching benefication, cyanidation, cutting, sizing, polishing and other similar activities; (j) "License" refers to the privilege granted to a person to legitimately pursue his occupation as a small-scale miner or processor under this Act; (k) "Mining plan" refers to a two-year program of activities and methodologies employed in the extraction and production of minerals or ore-bearing materials, including the financial plan and other resources in support thereof; (l) "Director" refers to the regional executive director of the Department of Environment and Natural Resources; and (m) "Secretary" refers to the Secretary of the Department of Environment and Natural Resources. Sec. 4. People's Small-scale Mining Program. — For the purpose of carrying out the declared policy provided in Section 2 hereof, there is hereby established a People's Smallscale Mining Program to be implemented by the Secretary of the Department of Environment and Natural Resources, hereinafter called the Department, in coordination with other concerned government agencies, designed to achieve an orderly, systematic and rational scheme for the small-scale development and utilization of mineral resources in certain mineral areas in order to address the social, economic, technical, and environmental connected with small-scale mining activities. The People's Small-scale Mining Program shall include the following features: (a) The identification, segregation and reservation of certain mineral lands as people's small-scale mining areas; (b) The recognition of prior existing rights and productivity;

(c) The encouragement of the formation of cooperatives; (d) The extension of technical and financial assistance, and other social services; (e) The extension of assistance in processing and marketing; (f) The generation of ancillary livelihood activities; (g) The regulation of the small-scale mining industry with the view to encourage growth and productivity; and (h) The efficient collection of government revenue. Sec. 5. Declaration of People's Small-scale Mining Areas. — The Board is hereby authorized to declare and set aside people's small-scale mining areas in sites onshore suitable for small-scale mining, subject to review by the Secretary, immediately giving priority to areas already occupied and actively mined by small-scale miners before August 1, 1987: Provided, That such areas are not considered as active mining areas: Provided, further, That the minerals found therein are technically and commercially suitable for small-scale mining activities: Provided, finally, That the areas are not covered by existing forest rights or reservations and have not been declared as tourist or marine reserved, parks and wildlife reservations, unless their status as such is withdrawn by competent authority. Sec. 6. Future People's Small-scale Mining Areas. — The following lands, when suitable for small-scale mining, may be declared by the Board as people's small scale mining areas: (a) Public lands not subject to any existing right; vi (b) Public lands covered by existing mining rights which are not active mining areas; and (c) Private lands, subject to certain rights and conditions, except those with substantial improvements or in bona fide and regular use as a yard, stockyard, garden, plant nursery, plantation, cemetery or burial site, or land situated within one hundred meters (100 m.) from such cemetery or burial site, water reservoir or a separate parcel of land with an area of ten thousand square meters (10,000 sq. m.) or less. Sec. 7. Ancestral Lands. — No ancestral land may be declared as a people's small-scale mining area without the prior consent of the cultural communities concerned: Provided, That, if ancestral lands are declared as people's small-scale mining areas, the members of the cultural communities therein shall be given priority in the awarding of small-scale mining contracts. Sec. 8. Registration of Small-scale Miners. — All persons undertaking small-scale mining activities shall register as miners with the Board and may organize themselves into cooperatives in order to qualify for the awarding of a people's small-scale mining contract. Sec. 9. Award of People's Small-scale Mining Contracts. — A people's small-scale mining contract may be awarded by the Board to small-scale miners who have voluntarily organized and have duly registered with the appropriate government agency as an individual miner or cooperative; Provided, That only one (1) people's small-scale mining contract may be awarded at any one time to a small-scale mining operations within one (1) year from the date of award: Provided, further, That priority shall be given or city where the small-scale mining area is located.

Applications for a contract shall be subject to a reasonable fee to be paid to the Department of Environment and Natural Resources regional office having jurisdiction over the area. Sec. 10. Extent of Contract Area. — The Board shall determine the reasonable size and shape of the contract area following the meridional block system established under Presidential Decree No. 463, as amended, otherwise known as the Mineral Resources Development Decree of 1974, but in no case shall the area exceed twenty hectares (20 has.) per contractor and the depth or length of the tunnel or adit not exceeding that recommended by the director taking into account the following circumstances: (a) Size of membership and capitalization of the cooperative; (b) Size of mineralized area; (c) Quantity of mineral deposits; (d) Safety of miners; (e) Environmental impact and other considerations; and (f) Other related circumstances. Sec. 11. Easement Rights. — Upon the declaration of a people's small-scale mining area, the director, in consultation with the operator, claimowner, landowner or lessor of an affected area, shall determine the right of the small scale miners to existing facilities such as mining and logging roads, private roads, port and communication facilities, processing plants which are necessary for the effective implementation of the People's Small-scale Mining Program, subject to payment of reasonable fees to the operator, claimowner, landowner or lessor. Sec. 12. Rights Under a People's Small-scale Mining Contract. — A people's small-scale mining contract entitles the smallscale mining contractor to the right to mine, extract and dispose of mineral ores for commercial purposes. In no case shall a small-scale mining contract be subcontracted, assigned or otherwise transferred. Sec. 13. Terms and Conditions of the Contract. — A contract shall have a term of two (2) years, renewable subject to verification by the Board for like periods as long as the contractor complies with the provisions set forth in this Act, and confers upon the contractor the right to mine within the contract area: Provided, That the holder of a small-scale mining contract shall have the following duties and obligations: (a) Undertake mining activities only in accordance with a mining plan duly approved by the Board; (b) Abide by the Mines and Geosciences Bureau and the small-scale Mining Safety Rules and Regulations; (c) Comply with his obligations to the holder of an existing mining right; (d) Pay all taxes, royalties or government production share as are now or may hereafter be provided by law; (e) Comply with pertinent rules and regulations on environmental protection and conservation, particularly those on tree-cutting mineral-processing and pollution control; (f) File under oath at the end of each month a detailed production and financial report to the Board; and

(g) Assume responsibility for the safety of persons working in the mines.

mills upon the recommendation of the Board based on the viability of the project.

Sec. 14. Rights of Claimowners. — In case a site declared and set aside as a people's-scale mining area is covered by an existing mining right, the claimowner and the small-scale miners therein are encouraged to enter into a voluntary and acceptable contractual agreement with respect to the smallscale utilization of the mineral values from the area under claim. In case of disagreement, the claimowner shall be entitled to the following rights and privileges: (a) Exemption from the performance of annual work obligations and payment of occupation fees, rental, and real property taxes;

The Board shall issue licenses for the operation of custom mills and other processing plants subject to pollution control and safety standards.

(b) Subject to the approval of the Board, free access to the contract area to conduct metallurgical tests, explorations and other activities, provided such activities do not unduly interfere with the operations of the small-scale miners; and (c) Royalty equivalent to one and one half percent (1 1/2%) of the gross value of the metallic mineral output or one percent (1%) of the gross value of the nonmetallic mineral output to be paid to the claimowner: Provided, That such rights and privileges shall be available only if he is not delinquent and other performance of his annual work obligations and other requirements for the last two (2) years prior to the effectivity of this Act. Sec. 15. Rights of Private Landowners. — The private landowner or lawful possessor shall be notified of any plan or petition to declare his land as a people's small-scale mining area. Said landowner may oppose such plan or petition in an appropriate proceeding and hearing conducted before the Board. If a private land is declared as a people's small-scale mining area, the owner and the small-scale mining contractors are encouraged to enter into a voluntary and acceptable contractual agreement for the small-scale utilization of the mineral values from the private land: Provided, That the owner shall in all cases be entitled to the payment of actual damages which he may suffer as a result of such declaration: Provided, further, That royalties paid to the owner shall in no case exceed one percent (1%) of the gross value of the minerals recovered as royalty. Sec. 16. Ownership of Mill Tailings. — The small-scale mining contractor shall be the owner of all mill tailings produced from the contract area. He may sell the tailings or have them processed in any custom mill in the area: Provided, That, if the small-scale mining contractor decide to sell its mill tailings, the claimowner shall have a preemptive right to purchase said mill tailings at the prevailing market price. Sec. 17. Sale of Gold. — All gold produced by small-scale miners in any mineral area shall be sold to the Central Bank, or its duly authorized representatives, which shall buy it at prices competitive with those prevailing in the world market regardless of volume or weight. The Central Bank shall establish as many buying stations in gold-rush areas to fully service the requirements of the smallscale minerals thereat. Sec. 18. Custom Mills. — The establishment and operation of safe and efficient customs mills to process minerals or orebearing materials shall be limited to mineral processing zones duly designated by the local government unit concerned upon recommendation of the Board. In mining areas where the private sector is unable to establish custom mills, the Government shall construct such custom

The Department shall establish assay laboratories to crosscheck the integrity of custom mills and to render metallurgical and laboratory services to mines. Custom mills shall be constituted as withholding agents for the royalties, production share or other taxes due the Government. Sec. 19. Government Share and Allotment. — The revenue to be derived by the Government from the operation of the mining program herein established shall be subject to the sharing provided in the Local Government Code. Sec. 20. People's Small-scale Mining Protection Fund. — There is hereby created a People's Small-scale Mining Protection Fund which shall be fifteen percent (15%) of the national government's share due the Government which shall be used primarily for information dissemination and training of small-scale miners on safety, health and environmental protection, and the establishment of mine rescue and recovery teams including the procurement of rescue equipment necessary in cases of emergencies such as landslides, tunnel collapse, or the like. The fund shall also be made available to address the needs of the small-scale miners brought about by accidents and/or fortuitous events. Sec. 21. Rescission of Contracts and Administrative Fines. — The noncompliance with the terms and conditions of the contract or violation of the rules and regulations issued by the Secretary pursuant to this Act, as well as the abandonment of the mining site by the contractor, shall constitute a ground for the cancellation of the contracts and the ejectment from the people's small-scale mining area of the contractor. In addition, the Secretary may impose fines against the violator in an amount of not less than Twenty thousand pesos (P20,000.00) and not more than One hundred thousand pesos (P100,000.00). Nonpayment of the fine imposed shall render the small-scale mining contractor ineligible for other smallscale mining contracts. Sec. 22. Reversion of People's Small-scale Mining Areas. — The Secretary, upon recommendation of the director, shall withdraw the status of the people's small-scale mining area when it can no longer feasibly operated on a small-scale mining basis or when the safety, health and environmental conditions warrant that the same shall revert to the State for proper disposition. Sec. 23. Actual Occupation by Small-scale Miners. — Smallscale miners who have been in actual operation of mineral lands on or before August 1, 1987 as determined by the Board shall not be dispossessed, ejected or removed from said areas: Provided, That they comply with the provisions of this Act. Sec. 24. Provincial/City Mining Regulatory Board. — There is hereby created under the direct supervision and control of the Secretary a provincial/city mining regulatory board, herein called the Board, which shall be the implementing agency of the Department, and shall exercise the following powers and functions, subject to review by the Secretary:

(a) Declare and segregate existing gold-rush areas for smallscale mining; (b) Reserve future gold and other mining areas for small-scale mining; (c) Award contracts to small-scale miners; (d) Formulate and implement rules and regulations related to small-scale mining; (e) Settle disputes, conflicts or litigations over conflicting claims within a people's small-scale mining area, an area that is declared a small-mining; and (f) Perform such other functions as may be necessary to achieve the goals and objectives of this Act. Sec. 25. Composition of the Provincial/City Mining Regulatory Board. — The Board shall be composed of the Department of Environment and Natural Resources representative as Chairman; and the representative of the governor or city mayor, as the representative of the governor or city mayor, as the case may be, one (1) small scale mining representative, one (1) big-scale mining representative, and the representative from a nongovernment organization who shall come from an environmental group, as members. The representatives from the private sector shall be nominated by their respective organizations and appointed by the Department regional director. The Department shall provide the staff support to the Board. Sec. 26. Administrative Supervision over the People's Smallscale Mining Program. — The Secretary through his representative shall exercise direct supervision and control over the program and activities of the small-scale miners within the people's small-scale mining area.

South Cotabato, Sultan Kudarat, Davao del Sur and North Cotabato. On August 15, 1995, the Environment Secretary Victor Ramos issued DENR Administrative Order 95-23, which was later repealed by DENR Administrative Order 96-40, adopted on December 20, 1996. Petitioners prayed that RA 7942, its implementing rules, and the FTAA between the government and WMCP be declared unconstitutional on ground that they allow fully foreign owned corporations like WMCP to exploit, explore and develop Philippine mineral resources in contravention of Article XII Section 2 paragraphs 2 and 4 of the Charter. In January 2001, MMC – a publicly listed Australian mining and exploration company – sold its whole stake in WMCP to Sagittarius Mines, 60% of which is owned by Filipinos while 40% of which is owned by Indophil Resources, an Australian company. DENR approved the transfer and registration of the FTAA in Sagittarius’ name but Lepanto Consolidated assailed the same. The latter case is still pending before the Court of Appeals. EO 279, issued by former President Aquino on July 25, 1987, authorizes the DENR to accept, consider and evaluate proposals from foreign owned corporations or foreign investors for contracts or agreements involving either technical or financial assistance for large scale exploration, development and utilization of minerals which upon appropriate recommendation of the (DENR) Secretary, the president may execute with foreign proponent. WMCP likewise contended that the annulment of the FTAA would violate a treaty between the Philippines and Australia which provides for the protection of Australian investments. ISSUES: 1. Whether or not the Philippine Mining Act is unconstitutional for allowing fully foreign-owned corporations to exploit Philippine mineral resources

The Secretary shall within ninety (90) days from the effectivity of this Act promulgate rules and regulations to effectively implement the provisions of the same. Priority shall be given to such rules and regulations that will ensure the least disruption in the operations of the small-scale miners. Sec. 27. Penal Sanctions. — Violations of the provisions of this Act or of the rules and regulations issued pursuant hereto shall be penalized with imprisonment of not less than six (6) months nor more than six (6) years and shall include the confiscation and seizure of equipment, tools and instruments.

Cases La Bugal B’laan Tribal Association Inc., et al. V. Victor O. Ramos, Secretary Department of Environment and Natural Resources; Horacio Ramos, Director, Mines and Geosciences Bureau (MGB-DENR);

2.

Whether or not the FTAA between the government and WMCP is a “service contract” that permits fully foreign owned companies to exploit Philippine mineral resources

3.

Whether the Court has a role in the exercise of the power of control over the EDU of our natural resources

HELD: 1)

RA 7942 or the Philippine Mining Act of 1995 is unconstitutional for permitting fully foreign owned corporations to exploit Philippine natural resources.

Article XII Section 2 of the 1987 Constitution retained the Regalian doctrine which states that “All lands of the public domain, waters, minerals, coal, petroleum, and other minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State.” The same section also states that, “exploration and development and utilization of natural resources shall be under the full control and supervision of the State.”

The constitutional provision allowing the President to enter into FTAAs is an exception to the rule that participation in the nation’s natural resources is reserved exclusively to Filipinos. Provision must be construed strictly against their enjoyment by non-Filipinos.

Conspicuously absent in Section 2 is the provision in the 1935 and 1973 Constitutions authorizing the State to grant licenses, concessions, or leases for the exploration, exploitation, development or utilization of natural resources. Y such omission, the utilization of inalienable lands of public domain through license, concession or lease is no longer allowed under the 1987 Constitution.

RA 7942 (The Philippine Mining Act) took effect on April 9, 1995. Before the effectivity of RA 7942, or on March 30, 1995, the President signed a Financial and Technical Assistance Agreement (FTAA) with WMCP, a corporation organized under Philippine laws, covering close to 100, 000 hectares of land in

Under the concession system, the concessionaire makes a direct equity investment for the purpose of exploiting a particular natural resource within a given area. The concession amounts to complete control by the concessionaire over the country’s natural resource, for it is

given exclusive and plenary rights to exploit a particular resource at the point of extraction. The 1987 Constitution, moreover, has deleted the phrase “management or other forms of assistance” in the 1973 Charter. The present Constitution now allows only “technical and financial assistance.” The management or operation of mining activities by foreign contractors, the primary feature of service contracts was precisely the evil the drafters of the 1987 Constitution sought to avoid. The constitutional provision allowing the President to enter into FTAAs is an exception to the rule that participation in the nation’s natural resources is reserved exclusively to Filipinos. Accordingly such provision must be construed strictly against their enjoyment by non-Filipinos. Therefore RA 7942 is invalid insofar as said act authorizes service contracts. Although the statute employs the phrase “financial and technical agreements” in accordance with the 1987 Constitution, its pertinent provisions actually treat these agreements as service contracts that grant beneficial ownership to foreign contractors contrary to the fundamental law. The underlying assumption in the provisions of the law is that the foreign contractor manages the mineral resources just like the foreign contractor in a service contract. By allowing foreign contractors to manage or operate all the aspects of the mining operation, RA 7942 has in effect conveyed beneficial ownership over the nation’s mineral resources to these contractors, leaving the State with nothing but bare title thereto. The same provisions, whether by design or inadvertence, permit a circumvention of the constitutionally ordained 6040% capitalization requirement for corporations or associations engaged in the exploitation, development and utilization of Philippine natural resources. When parts of a statute are so mutually dependent and connected as conditions, considerations, inducements or compensations for each other as to warrant a belief that the legislature intended them as a whole, then if some parts are unconstitutional, all provisions that are thus dependent, conditional or connected must fall with them. Under Article XII Section 2 of the 1987 Charter, foreign owned corporations are limited only to merely technical or financial assistance to the State for large scale exploration, development and utilization of minerals, petroleum and other mineral oils. 2)

The FTAA between WMCP and the Philippine government is likewise unconstitutional since the agreement itself is a service contract.

Section 1.3 of the FTAA grants WMCP, a fully foreign owned corporation, the “exclusive right to explore, exploit, utilize and dispose of all minerals and by-products that may be produced from the contract area.” Section 1.2 of the same agreement provides that WMCP shall provide “all financing, technology, management, and personnel necessary for the Mining Operations.” These contractual stipulations and related provisions in the FTAA taken together, grant WMCP beneficial ownership over natural resources that properly belong to the State and are intended for the benefit of its citizens. These stipulations are abhorrent to the 1987 Constitution. They are precisely the vices that the fundamental law seeks to avoid, the evils that it aims to suppress. Consequently, the contract from which they spring must be struck down.

3)

The Chief Executive is the official constitutionally mandated to “enter into agreements with foreign owned corporations.” On the other hand, Congress may review the action of the President once it is notified of “every contract entered into in accordance with this [constitutional] provision within thirty days from its execution.” In contrast to this express mandate of the President and Congress in the exploration, development and utilization (EDU) of natural resources, Article XII of the Constitution is silent on the role of the judiciary. However, should the President and/or Congress gravely abuse their discretion in this regard, the courts may -- in a proper case -- exercise their residual duty under Article VIII. Clearly then, the judiciary should not inordinately interfere in the exercise of this presidential power of control over the EDU of our natural resources.

Under the doctrine of separation of powers and due respect for co-equal and coordinate branches of government, the Court must restrain itself from intruding into policy matters and must allow the President and Congress maximum discretion in using the resources of our country and in securing the assistance of foreign groups to eradicate the grinding poverty of our people and answer their cry for viable employment opportunities in the country. “The judiciary is loath to interfere with the due exercise by coequal branches of government of their official functions.” As aptly spelled out seven decades ago by Justice George Malcolm, “Just as the Supreme Court, as the guardian of constitutional rights, should not sanction usurpations by any other department of government, so should it as strictly confine its own sphere of influence to the powers expressly or by implication conferred on it by the Organic Act.” Let the development of the mining industry be the responsibility of the political branches of government. And let not the Court interfere inordinately and unnecessarily. The Constitution of the Philippines is the supreme law of the land. It is the repository of all the aspirations and hopes of all the people. The Constitution should be read in broad, life-giving strokes. It should not be used to strangulate economic growth or to serve narrow, parochial interests. Rather, it should be construed to grant the President and Congress sufficient discretion and reasonable leeway to enable them to attract foreign investments and expertise, as well as to secure for our people and our posterity the blessings of prosperity and peace. The Court fully sympathize with the plight of La Bugal B’laan and other tribal groups, and commend their efforts to uplift their communities. However, the Court cannot justify the invalidation of an otherwise constitutional statute along with its implementing rules, or the nullification of an otherwise legal and binding FTAA contract. The Court believes that it is not unconstitutional to allow a wide degree of discretion to the Chief Executive, given the nature and complexity of such agreements, the humongous amounts of capital and financing required for large-scale mining operations, the complicated technology needed, and the intricacies of international trade, coupled with the State’s need to maintain flexibility in its dealings, in order to preserve and enhance our country’s competitiveness in world markets. On the basis of this control standard, the Court upholds the constitutionality of the Philippine Mining Law, its Implementing Rules and Regulations -- insofar as they relate to financial and technical agreements -- as well as the subject Financial and Technical Assistance Agreement

Separate Opinion of Justice Panganiban The FTAA is now to be implemented by a Filipino corporation, therefore the Court can no longer declare it unconstitutional. The CA case is a dispute between two Filipino corporations (Sagittarius and Lepanto) both claiming the right to purchase the foreign shares in WMCP. Regardless of which side eventually prevails, the FTAA would still be in the hands of a

qualified Filipino firm. The present Constitution, moreover, does not limit foreign participation in the exploration, development and utilization of minerals, petroleum and mineral oils to financial or technical assistance. The drafters’ choice of words and excerpts from deliberations of the Constitutional Commission reveal that the present Charter did not limit to financial or technical assistance the participation of foreign corporations in the large-scale exploration, development, and utilization of minerals, petroleum and mineral oils. The drafters’ use of the phrase “agreements xxx involving xxx technical or financial assistance” – in Article XII Section 2 of the 1987 Charter does not absolutely show intent to exclude other modes of assistance. “Rather the phrase signifies the possibility of the inclusion of other activities, provided they bear some reasonable relationship to and compatibility with financial or technical assistance.” If the drafters intended to strictly confine foreign corporations to financial or technical assistance only, they would have employed “restrictive” or “stringent” language. Excerpts from then deliberations of the Constitutional Commission likewise show that its members discussed “technical or financial assistance agreements” in the same breath as “service contracts” and used the terms interchangeably. The members of the Concom actually had in mind the Marcos-era service contracts that they were more familiar with (but which they duly modified and restricted so as to prevent present abuses), when they were crafting and polishing the provisions dealing with financial and/or technical assistance agreements. The Concom discussions in their entirely had to do with service contracts that might be given to foreign-owned corporations as exceptions to the general principle of Filipino control of the economy APEX MINING CO., INC. vs. SOUTHEAST MINDANAO GOLD MINING CORP Proclamation No. 369 was issued to establish the AgusanDavao-Surigao Forest Reserve.Camilo Banad and his group, who claimed to have first discovered traces of gold in Mount Diwata, filed aDeclaration of Location for six mining claims in the area. Apex Mining Corporation entered intooperating agreements with Banad and his group.Marcopper Mining Corporation filed mining claims for areas adjacent to the area covered by the DOL of Banad and his group. MMC abandoned the claims and instead applied for a prospecting permit with theBureau of Forest Development. BFD issued a Prospecting Permit to MMC covering an area within theforest reserve under Proclamation No. 369. The permit embraced the areas claimed by Apex and the other individual mining claimants. MMC filed before the BMG a Petition for the Cancellation of the MiningClaims of Apex and Small Scale Mining Permits. MMC alleged that the areas covered by its EP 133 and the mining claims of Apex were within an established and existing forest reservation. Apex filed a motion to dismiss MMC¶s petition alleging that its mining claims are not within any established or proclaimed forest reserve, and as such, the acquisition of mining rights thereto must be undertaken via registration of DOL with the BMG and not through the filing of application for permit to prospect with the BFD. However, Supreme Court rendered a Decision against Apex holding that the disputed area is a forest reserve; hence, the proper procedure in acquiring mining rights therein is by initially applying for a permit to prospect with the BFD and not through a registration of DOL with the BMG. DENR issued Department Administrative Order No. 66 declaring areas covered by the Agusan-Davao-Surigao Forest Reserve as nonforest lands and open to small-scale mining purposes. A portion of thecontested area open to small scale miners, several mining entities filed applications for Mineral Production Sharing Agreement. Monkayo Integrated Small

Scale Miners Association (MISSMA) filed an MPSA application which was denied by the BMG on the grounds that the area applied for is within the area covered by MMC EP 133and that the MISSMA was not qualified to apply for an MPSA.MMC assigned EP 133 to Southeast Mindanao Gold Mining Corporation. BMG accepted and registered SEMs MPSA application and the Deed of Assignment over EP 133 executed in its favor by MMC.SEM¶s application was designated MPSA Application No. 128 (MPSAA 128).The PA rendered a resolution that EP 133 was valid and subsisting. It also declared that the BMG Director, under Section 99 of the Consolidated Mines Administrative Order implementing Presidential Decree No. 463, was authorized to issue exploration permits and to renew the same without limit. The validity of Ex loration Permit No. 133 was reiterated and all the adverse claims against MPSAA No.128 are DISMISSED. Undaunted by the PA ruling, the adverse claimants appealed to the Mines Adjudication Board. In aDecision, the MAB considered erroneous the dismissal by the PA of the adverse claims filed againstMMC and SEM over a mere technicality of failure to submit a sketch plan. It argued that the rules of procedure are not meant to defeat substantial justice as the former are merely secondary in importance to the latter. Dealing with the question on EP 133¶s validity, the MAB opined that said issue was not crucial and was irrelevant in adjudicating the appealed case because EP 133 has long expired due to its non-renewal and that the holder of the same, MMC, was no longer a claimant of the Agusan-DavaoSurigao Forest Reserve having relinquished its right to SEM. After it brushed aside the issue of the validity of EP133 for being irrelevant, the MAB proceeded to treat SEM¶s MPSA application over the disputed area asan entirely new and distinct application. It approved the MPSA application, excluding the area segregated by DAO No. 66, which declared 729 hectares within the Diwalwal area as non-forest lands open for small-scale mining. Dissatisfied, the Villaflor group and Balite appealed the decision to this Court. SEM, aggrieved by the exclusion of 729 hectares from its MPSA application, likewise appealed. Apex filed a Motion for Leave to Admit Petition for Intervention predicated on its right to stake its claim over the Diwalwal gold rush which was granted by the Court. These cases, however, were remanded to the Court of Appeals for proper disposition pursuant to Rule 43 of the 1997 Rules of Civil Procedure. The Court of Appeals consolidated the remanded cases as CA-G.R. SP No. 61215 and No. 61216.The Court of Appeals affirmed in toto the decision of the PA and declared null and void the MAB decision. Hence, the instant Petitions for Review on Certiorari under Rule 45 of the Rules of Court filed by Apex, Balite and MAB. During the pendency of these Petitions, President Gloria Macapagal-Arroyo issued Proclamation No. 297.This proclamation excluded an area of 8,100 hectares located in Monkayo, Compostela Valley, and proclaimed the same as mineral reservation and as environmentally critical area. Subsequently, DENR Administrative Order No. 2002-18 was issued declaring an emergency situation in the Diwalwal gold rush area and ordering the stoppage of all mining operations therein. Thereafter, Executive Order No. 217was issued by the President creating the National Task Force Diwalwal which is tasked to address the situation in the Diwalwal Gold Rush Area. Issue Whether the subsequent acts of the executive department such as the issuance of Proclamation No. 297,and DAO No. 2002-18 can outweigh Apex and Balites claims over the Diwalwal Gold Rush Area. Held Upon the effectivity of the 1987 Constitution, the State assumed a more dynamic role in the exploration,development and utilization of the natural resources of the country. With

this policy, the State may pursuefull control and supervision of the exploration, development and utilization of the country¶s naturalmineral resources. The options open to the State are through direct undertaking or by entering into co- production, joint venture, or production-sharing agreements, or by entering into agreement with foreign-owned corporations for large-scale exploration, development and utilization. Recognizing the importance of the country’s natural resources, not only for national economic development, but also for its security and national defense, Section 5 of Republic Act No. 7942 empowers the President, when the national interest so requires, to establish mineral reservations where mining operations shall be undertaken directly by the State or through a contractor Loney vs. People of the Philippines Petitioners are officers of Marcopper Mining Corp., engaged in mining in the province of Marinduque. Marcopper had been storing tailings from its operation in a pit in Mt. Taipan, at the base of which ran a drainage leading to Boac and Makalupnit rivers. Consequently, Marcopper had discharged millions of tons of tailings into the rivers. In August 1996, the DOJ charged petitioners with violation of the Water Code of the Philippines, the National Pollution Control Decree, Philippine Mining Act and RPC for Reckless Imprudence Resulting in Damage to Property. Petitioners moved to quash the information on grounds that these were “duplicitous” as DOJ charged more than one offense for a single act and that the Informations contain allegations which constitute legal excuse or justification. The MTC ruled that as far as the 3 laws are concerned, only the Information for violation of Philippine Mining Act should be maintained. Thus, the Informations for violation of AntiPollution Law and the Water Code should be dismissed because the elements constituting the aforesaid violations are absorbed by the same elements which constitute violation of the Philippine Mining Act. The RTC reversed the said decision and ruled that there can be no absorption by one offense of the three other offenses, as the acts penalized by these laws are separate and distinct from each other. This was affirmed by the CA. Petitioners contend that they should be charged with only one offense – Reckless Imprudence Resulting in Damage to Property — because all the charges filed against them are based on a single act or incident of polluting the Boac and Makalupnit rivers thru dumping of mine tailings" and that the charge for violation of Article 365 of the RPC "absorbs" the other charges since the element of "lack of necessary or adequate protection, negligence, recklessness and imprudence" is common among them. Ruling Court had ruled that a single act or incident might offend against two or more entirely distinct and unrelated provisions of law thus justifying the prosecution of the accused for more than one offense. The only limit to this rule is the Constitutional prohibition that no person shall be twice put in jeopardy of punishment for the same offense. However, for the limited purpose of controverting petitioners’ claim that they should be charged with one offense only, the SC quote with approval RTC’s comparative analysis of PD 1067, PD 984, RA 7942, and Article 365 of the RPC showing that in each of these laws on which petitioners were charged, there is one essential element not required of the others, thus: In P.D. 1067 (Philippines Water Code), the additional element to be established is the dumping of mine tailings into the

Makulapnit River and the entire Boac River System without prior permit from the authorities concerned. The gravamen of the offense here is the absence of the proper permit to dump said mine tailings. This element is not indispensable in the prosecution for violation of PD 984 (Anti-Pollution Law), [RA] 7942 (Philippine Mining Act) and Art. 365 of the Revised Penal Code. One can be validly prosecuted for violating the Water Code even in the absence of actual pollution, or even if it has complied with the terms of its Environmental Compliance Certificate, or further, even if it did take the necessary precautions to prevent damage to property. In P.D. 984 (Anti-Pollution Law), the additional fact that must be proved is the existence of actual pollution. The gravamen is the pollution itself. In the absence of any pollution, the accused must be exonerated under this law although there was unauthorized dumping of mine tailings or lack of precaution on its part to prevent damage to property. In R.A. 7942 (Philippine Mining Act), the additional fact that must be established is the willful violation and gross neglect on the part of the accused to abide by the terms and conditions of the Environmental Compliance Certificate, particularly that the Marcopper should ensure the containment of run-off and silt materials from reaching the Mogpog and Boac Rivers. If there was no violation or neglect, and that the accused satisfactorily proved [sic] that Marcopper had done everything to ensure containment of the run-off and silt materials, they will not be liable. It does not follow, however, that they cannot be prosecuted under the Water Code, Anti-Pollution Law and the Revised Penal Code because violation of the Environmental Compliance Certificate is not an essential element of these laws. On the other hand, the additional element that must be established in Art. 365 of the Revised Penal Code is the lack of necessary or adequate precaution, negligence, recklessness and imprudence on the part of the accused to prevent damage to property. This element is not required under the previous laws. Unquestionably, it is different from dumping of mine tailings without permit, or causing pollution to the Boac river system, much more from violation or neglect to abide by the terms of the Environmental Compliance Certificate. Moreover, the offenses punished by special law are mal[a] prohibita in contrast with those punished by the Revised Penal Code which are mala in se.29 Consequently, the filing of the multiple charges against petitioners, although based on the same incident, is consistent with settled doctrine. On petitioners’ claim that the charge for violation of Article 365 of the RPC absorbs the charges for violation of PD 1067, PD 984, and RA 7942, suffice it to say that a mala in se felony (such as Reckless Imprudence Resulting in Damage to Property) cannot absorb mala prohibita crimes (such as those violating PD 1067, PD 984, and RA 7942). What makes the former a felony is criminal intent (dolo) or negligence (culpa); what makes the latter crimes are the special laws enacting them. Petitioners reiterate their contention in the Court of Appeals that their prosecution contravenes this Court’s ruling in People v. Relova. In particular, petitioners cite the Court’s statement in Relova that the law seeks to prevent harassment of the accused by "multiple prosecutions for offenses which though different from one another are nonetheless each constituted by a common set or overlapping sets of technical elements." This contention is also without merit. Relova is no authority for petitioners’ claim against multiple prosecutions based on a single act not only because the question of double jeopardy is not at issue here, but also because, as the Court of Appeals held, petitioners are being prosecuted for an act or incident punished by four national statutes and not by an ordinance and a national statute. In short, petitioners, if ever, fall under the first sentence of Section 21, Article III which prohibits

multiple prosecution for the same offense, and not, as in Relova, for offenses arising from the same incident.

(a) Public forest is the mass of lands of the public domain which has not been the subject of the present system of classification for the determination of which lands are needed for forest purposes and which are not. (b) Permanent forest or forest reserves refer to those lands of the public domain which have been the subject of the present system of classification and determined to be needed for forest purposes. (c) Alienable and disposable lands refer to those lands of the public domain which have been the subject of the present system of classification and declared as not needed for forest purposes. (d) Forest lands include the public forest, the permanent forest or forest reserves, and forest reservations. (e) Grazing land refers to that portion of the public domain which has been set aside, in view of the suitability of its topography and vegetation, for the raising of livestock.

PD No. 705 : Revised Forestry Code of the Philippines WHEREAS, proper classification, management and utilization of the lands of the public domain to maximize their productivity to meet the demands of our increasing population is urgently needed; WHEREAS, to achieve the above purpose, it is necessary to reassess the multiple uses of forest lands and resources before allowing any utilization thereof to optimize the benefits that can be derived therefrom; WHEREAS, it is also imperative to place emphasis not only on the utilization thereof but more so on the protection, rehabilitation and development of forest lands, in order to ensure the continuity of their productive condition; WHEREAS, the present laws and regulations governing forest lands are not responsive enough to support re-oriented government programs, projects and efforts on the proper classification and delimitation of the lands of the public domain, and the management, utilization, protection, rehabilitation, and development of forest lands; Section 2. Policies. The State hereby adopts the following policies: (a) The multiple uses of forest lands shall be oriented to the development and progress requirements of the country, the advancement of science and technology, and the public welfare; (b) Land classification and survey shall be systematized and hastened; (c) The establishment of wood-processing plants shall be encouraged and rationalized; and (d) The protection, development and rehabilitation of forest lands shall be emphasized so as to ensure their continuity in productive condition. Section 3. Definitions.

(f) Mineral lands refer to those lands of the public domain which have been classified as such by the Secretary of Natural Resources in accordance with prescribed and approved criteria, guidelines and procedure. (g) Forest reservations refer to forest lands which have been reserved by the President of the Philippines for any specific purpose or purposes. (h) National park refers to a forest land reservation essentially of primitive or wilderness character which has been withdrawn from settlement or occupancy and set aside as such exclusively to preserve the scenery, the natural and historic objects and the wild animals or plants therein, and to provide enjoyment of these features in such a manner as will leave them unimpaired for future generations. (i) Game refuge or bird sanctuary refers to a forest land designated for the protection of game animals, birds and fish and closed to hunting and fishing in order that the excess population may flow and restock surrounding areas. (j) Marine parks refers to any off-shore area inhabited by rare and unique species of marine flora and fauna. (k) Seashore park refers to any public shore area delimited for outdoor recreation, sports fishing, water skiing and related healthful activities. (l) Watershed reservation is a forest land reservation established to protect or improve the conditions of the water yield thereof or reduce sedimentation. (m) Watershed is a land area drained by a stream or fixed body of water and its tributaries having a common outlet for surface run-off. (n) Critical watershed is a drainage area of a river system supporting existing and proposed hydro-electric power and irrigation works needing immediate rehabilitation as it is being subjected to a fast denudation causing accelerated erosion and destructive floods. It is closed from logging until it is fully rehabilitated. (o) Mangrove is a term applied to the type of forest occurring on tidal flat along the sea coast, extending along streams where the water is brackish.

(p) Kaingin is a portion of the forest land, whether occupied or not, which is subjected to shifting and/or permanent slashand-burn cultivation having little or no provision to prevent soil erosion.

or conduct any activity involving the utilization of any forest resources.

(q) Forest product means timber, pulpwood, firewood, bark, tree top, resin, gum, wood, oil, honey, beeswax, nipa, rattan, or other forest growth such as grass, shrub, and flowering plant, the associated water, fish, game, scenic, historical, recreational and geologic resources in forest lands.

(dd) License agreement is a privilege granted by the State to a person to utilize forest resources within any forest land with the right of possession and occupation thereof to the exclusion of others, except the government, but with the corresponding obligation to develop, protect and rehabilitate the same in accordance with the terms and conditions set forth in said agreement.

(r) Dipterocarp forest is a forest dominated by trees of the dipterocarp species, such as red lauan, tengile, tiaong, white lauan, almon, bagtikan and mayapis of the Philippine mahogany group, apitong and the yakals.

(ee) Permit is a short-term privilege or authority granted by the State to a person to utilize any limited forest resources or undertake a limited activity with any forest land without any right of occupation and possession therein.

(s) Pine forest is a forest composed of the Benguet Pine in the Mountain Provinces or the Mindoro pine in Mindoro and Zambales provinces.

(ff) Annual allowable cut is the volume of materials, whether of wood or other forest products, that is authorized to be cut regularly from the forest.

(t) Industrial tree plantation is any tract of forest land purposely and extensively planted to timber crops primarily to supply the raw material requirements of existing or proposed processing plants and related industries.

(gg) Cutting cycle is the number of years between major harvests in the same working unit and/or region, within a rotation.

(u) Tree farm refers to any tract of forest land purposely and extensively planted to trees of economic value for their fruits, flowers, leaves, barks, or extractives, but not for the wood thereof. (v) Multiple-use is the harmonized utilization of the numerous beneficial uses of the land, soil, water, wildlife, recreation value, grass and timber of forest lands. (w) Selective logging means the systematic removal of the mature, over-mature and defective trees in such manner as to leave adequate number and volume of healthy residual trees of the desired species necessary to assure a future crop of timber, and forest cover for the protection and conservation of soil and water. (x) Seed tree system is partial clearcutting with seed trees left to regenerate the area. (y) Healthy residual is a sound or slightly injured tree of the commercial species left after logging. (z) Sustained-yield management implies continuous or periodic production of forest products in a working unit with the aid of achieving at the earliest practicable time an approximate balance between growth and harvest or use. This is generally applied to the commercial timber resources and is also applicable to the water, grass, wildlife, and other renewable resources of the forest. (aa) Processing plant is any mechanical set-up, machine or combination of machine used for the processing of logs and other forest raw materials into lumber, veneer, plywood, wallboard, block-board, paper board, pulp, paper or other finished wood products. (bb) Lease is a privilege granted by the State to a person to occupy and possess, in consideration of a specified rental, any forest land of the public domain in order to undertake any authorized activity therein. (cc) License is a privilege granted by the State to a person to utilize forest resources as in any forest land, without any right of occupation and possession over the same, to the exclusion of others, or establish and operate a wood-processing plant,

(hh) Ecosystem means the ecological community considered together with non-living factors and its environment as a unit. (ii) Silviculture is the establishment, reproduction and care of forest trees.

development

(jj) Rationalization is the organization of a business or industry using scientific business management principles and simplified procedures to obtain greater efficiency of operation. (kk) Forest officer means any official or employee of the Bureau who, by the nature of his appointment or the function of the position to which he is appointed, is delegated by law or by competent authority to execute, implement or enforce the provisions of this Code, other related laws, as well as their implementing regulations. (ll) Primitive tribe is a group of endemic tribe living primitively as a distinct portion of a people from a common ancestor. (mm) Private right means or refers to titled rights of ownership under existing laws, and in the case of primitive tribes, to rights of possession existing at the time a license is granted under this Code, which possession may include places of abode and worship, burial grounds, and old clearings, but excludes production forest inclusive of logged-over areas, commercial forests and established plantations of forest trees and trees of economic value. (nn) Person includes natural as well as juridical person. CHAPTER ORGANIZATION AND JURISDICTION OF THE BUREAU

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Section 4. Creation of, and merger of all forestry agencies into, the Bureau of Forest Development. For the purpose of implementing the provisions of this Code, the Bureau of Forestry, the Reforestation Administration, the Southern Cebu Reforestation Development Project, and the Parks and Wildlife Office, including applicable appropriations, records, equipment, property and such personnel as may be necessary, are hereby merged into a single agency to be known as the Bureau of Forest Development, hereinafter referred to as the Bureau.

Section 5. Jurisdiction of Bureau. The Bureau shall have jurisdiction and authority over all forest land, grazing lands, and all forest reservations including watershed reservations presently administered by other government agencies or instrumentalities. It shall be responsible for the protection, development, management, regeneration, and reforestation of forest lands; the regulation and supervision of the operation of licensees, lessees and permittees for the taking or use of forest products therefrom or the occupancy or use thereof; the implementation of multiple use and sustained yield management in forest lands; the protection, development and preservation of national parks, marine parks, game refuges and wildlife; the implementation of measures and programs to prevent kaingin and managed occupancy of forest and grazing lands; in collaboration with other bureaus, the effective, efficient and economic classification of lands of the public domain; and the enforcement of forestry, reforestation, parks, game and wildlife laws, rules, and regulations. The Bureau shall regulate the establishment and operation of sawmills, veneer and plywood mills and other wood processing plants and conduct studies of domestic and world markets of forest products. Section 6. Director and Assistant Director and their qualifications. The Bureau shall be headed by a Director, who shall be assisted by one or more Assistant Directors. The Director and Assistant Directors shall be appointed by the President. No person shall be appointed Director or Assistant Director of the Bureau unless he is a natural born citizen of the Philippines, at least 30 years of age, a holder of at least a Bachelor's Degree in Forestry or its equivalent, and a registered forester. Section 7. Supervision and Control. The Bureau shall be directly under the control and supervision of the Secretary of the Department of Natural Resources, hereinafter referred to as the Department Head. Section 8. Review. All actions and decisions of the Director are subject to review, motu propio or upon appeal of any person aggrieved thereby, by the Department Head whose decision shall be final and executory after the lapse of thirty (30) days from receipt by the aggrieved party of said decision, unless appealed to the President in accordance with the Executive Order No. 19, series of 1966. The Decision of the Department Head may not be reviewed by the courts except through a special civil action for certiorari or prohibition. Section 9. Rules and Regulations. The Department Head, upon the recommendation of the Director of Forest Development, shall promulgate the rules and regulations necessary to implement effectively the provisions of this Code. Section 10. Creation of Functional Divisions, and Regional and District Offices. All positions in the merged agencies are considered vacant. Present occupants may be appointed in accordance with a staffing pattern or plan of organization to be prepared by the Director and approved by the Department Head. Any appointee who fails to report for duty in accordance with the approved plan within thirty (30) days upon receipt of notification shall be deemed to have declined the appointment, in which case the position may be filed by any other qualified applicant.

For the efficient and effective implementation of the program of the Bureau, the following divisions and sections are hereby created, to wit: The Department Head may, upon recommendation of the Director, reorganize or create such other divisions, sections of units as may be deemed necessary and to appoint the personnel there: Provided, That an employee appointed or designated as officer-in-charge of a newly created division, section or unit, or to an existing vacant position with a higher salary, shall receive, from the date of such appointment or designation until he is replaced or reverted to his original position, the salary corresponding to the position temporarily held by him. There shall be created at least eleven regional offices. In each region, there shall be as many forest districts as may be necessary, in accordance with the extent of forest area, established work loads, need for forest protection, fire prevention and other factors, the provisions of any law to the contrary notwithstanding: Provided, That the boundaries of such districts shall follow, whenever possible, natural boundaries of watersheds under the river-basin concept of management. Section 11. Manpower Development. The Bureau shall establish and operate an in-service training center for the purpose of upgrading and training its personnel and new employees. The Bureau shall also set aside adequate funds to enable personnel to obtain special education and training in local or foreign colleges or institutions. Section 12. Performance Evaluation. The Bureau shall devise a system, to be approved by the Department Head, to evaluate the performance of its employees. The system shall measure accomplishment in quantity and quality of performance as related to the funded program of work assigned to each organizational unit. There shall be included a system of periodic inspection of district offices by the regional offices and the regional and district offices by the Central Office in both functional fields and in the overall assessment of how each administrative unit has implemented the laws, regulations, policies, programs, and practices relevant to such unit. The evaluation system shall provide the information necessary for annual progress reports and determination of employee training civil service awards and transfer or disciplinary action. CHAPTER CLASSIFICATION AND SURVEY

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Section 13. System of Land Classification. The Department Head shall study, devise, determine and prescribe the criteria, guidelines and methods for the proper and accurate classification and survey of all lands of the public domain into agricultural, industrial or commercial, residential, resettlement, mineral, timber or forest, and grazing lands, and into such other classes as now or may hereafter be provided by law, rules and regulations. In the meantime, the Department Head shall simplify through inter-bureau action the present system of determining which of the unclassified lands of the public domain are needed for forest purposes and declare them as permanent forest to form part of the forest reserves. He shall decree those classified and determined not to be needed for forest purposes as alienable and disposable lands, the administrative jurisdiction and management of which shall be transferred to the Bureau of Lands: Provided, That mangrove and other swamps not needed for shore protection and suitable for fishpond purposes shall be released to, and be placed under the

administrative jurisdiction and management of, the Bureau of Fisheries and Aquatic Resources. Those still to be classified under the Present system shall continue to remain as part of the public forest.

9. Areas needed for other purposes, such as national parks, national historical sites, game refuges and wildlife sanctuaries, forest station sites, and others of public interest; and

Section 14. Existing Pasture Leases and Permits in Forest Lands. Forest lands which have been the subject of pasture leases and permits shall remain classified as forest lands until classified as grazing lands under the criteria, guidelines and methods of classification to be prescribed by the Department Head: Provided, That the administration, management and disposition of grazing lands shall remain under the Bureau.

10. Areas previously proclaimed by the President as forest reserves, national parks, game refuge, bird sanctuaries, national shrines, national historic sites:

Section 15. Topography. No land of the public domain eighteen per cent (18%) in slope or over shall be classified as alienable and disposable, nor any forest land fifty per cent (50%) in slope or over, as grazing land. Lands eighteen per cent (18%) in slope or over which have already been declared as alienable and disposable shall be reverted to the classification of forest lands by the Department Head, to form part of the forest reserves, unless they are already covered by existing titles or approved public land application, or actually occupied openly, continuously, adversely and publicly for a period of not less than thirty (30) years as of the effectivity of this Code, where the occupant is qualified for a free patent under the Public Land Act: Provided, That said lands, which are not yet part of a well-established communities, shall be kept in a vegetative condition sufficient to prevent erosion and adverse effects on the lowlands and streams: Provided, further, That when public interest so requires, steps shall be taken to expropriate, cancel defective titles, reject public land application, or eject occupants thereof. Section 16. Areas needed for forest purposes. The following lands, even if they are below eighteen per cent (18%) in slope, are needed for forest purposes, and may not, therefore, be classified as alienable and disposable land, to wit: 1. Areas less than 250 hectares which are far from, or are not contiguous with, any certified alienable and disposable land; 2. Isolated patches of forest of at least five (5) hectares with rocky terrain, or which protect a spring for communal use; 3. Areas which have already been reforested; 4. Areas within forest concessions which are timbered or have good residual stocking to support an existing, or approved to be established, wood processing plant; 5. Ridge tops and plateaus regardless of size found within, or surrounded wholly or partly by, forest lands where headwaters emanate; 6. Appropriately located road-rights-or-way; 7. Twenty-meter strips of land along the edge of the normal high waterline of rivers and streams with channels of at least five (5) meters wide; 8. Strips of mangrove or swamplands at least twenty (20) meters wide, along shorelines facing oceans, lakes, and other bodies of water, and strips of land at least twenty (20) meters wide facing lakes;

Provided, That in case an area falling under any of the foregoing categories shall have been titled in favor of any person, steps shall be taken, if public interest so requires, to have said title cancelled or amended, or the titled area expropriated. Section 17. Establishment of boundaries of forest lands. All boundaries between permanent forests and alienable and disposable lands shall be clearly marked and maintained on the ground, with infrastructure or roads, or concrete monuments at intervals of not more than five hundred (500) meters in accordance with established procedures and standards, or any other visible and practicable signs to insure protection of the forest. Section 18. Reservations in forest lands and off-shore areas. The President of the Philippines may establish within any lands of the public domain, forest reserve and forest reservation for the national park system, for preservation as critical watersheds, or for any other purpose, and modify boundaries of existing ones. The Department Head may reserve and establish any portion of the public forest or forest reserve as site or experimental forest for use of the Forest Research Institute. When public interest so requires, any off-shore area needed for the preservation and protection of its educational, scientific, historical, ecological and recreational values including the marine life found therein, shall be established as marine parks. CHAPTER UTILIZATION AND MANAGEMENT

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Section 19. Multiple use. The numerous beneficial uses of the timber, land, soil, water, wildlife, recreation value and grass of forest lands shall be evaluated and weighted before allowing the utilization, exploitation, occupation or possession thereof, or the conduct of any activity therein. Only the utilization, exploitation, occupation or possession of any forest land, or any activity therein, involving one or more or its resources, which will produce the optimum benefits to the development and progress of the country and the public welfare, without impairment or with the least injury to its other resources, shall be allowed. All forest reservations may be open to uses not inconsistent with the principal objectives of the reservation: Provided, That critical watersheds and national parks shall not be subject to logging operations. Section 20. License agreement, license, lease or permit. No person may utilize, exploit, occupy, possess or conduct any activity within any forest land, or establish and operate any wood-processing plant, unless he has been authorized to do so under a license agreement, lease, license, or permit. Section 21. Sustained yield. All measures shall be taken to achieve an approximate balance between growth and harvest or use of forest products in forest lands.

A. TIMBER Section 22. Silvicultural and harvesting systems. In any logging operations in production forests within forest lands, the proper silvicultural and harvesting systems that will promote optimum sustained yield shall be practised. (a) For dipterocarp forest, selective logging shall be practised. (b) For pine forest, the seed tree system with planting when necessary shall be practised. (c) For other types of forest, the silvicultural and harvesting system that will be found suitable by research shall be applied. Meanwhile, a system based on observation and practices abroad may be adopted initially. Any practised system are subject to modification or changes based on research findings. Section 23. Timber inventory. The Bureau shall conduct a program of progressive inventories of the harvestable timber and young trees in all forest lands, whether covered by any license agreement, license, lease or permit, or not, until a one hundred per cent (100%) timber inventory thereon has been achieved. Section 24. Required inventory prior to timber utilization in forest lands. No harvest of timber in any forest land shall be allowed unless it has been the subject of at least a five per cent (5%) timber inventory, or any statistically sound timber estimate, made not earlier than five (5) years prior to the issuance of a license agreement or license allowing such utilization. Section 25. Cutting cycle. The Bureau shall apply scientific cutting cycle and rotation in all forest lands, giving particular consideration to the age, volume and kind of healthy residual trees which may be left undisturbed and undamaged for future harvest and forest cover indipterocarp area, and seed trees and reproduction in pine area. Section 26. Annual allowable cut. The annual allowable cut of any particular forest land shall be determined on the basis of the established rotation and cutting cycle thereof, and the volume and kind of harvestable timber and healthy residuals, seed trees and reproduction found therein. Section 27. Duration of license agreement or license to harvest timber in forest lands. The duration of the privilege to harvest timber in any particular forest land under a license agreement or license shall be fixed and determined in accordance with the annual allowable cut therein, the established cutting cycle thereof, the yield capacity of harvestable timber, and the capacity of healthy residuals for a second growth. The privilege shall automatically terminate, even before the expiration of the license agreement of license, the moment the harvestable timber have been utilized without leaving any logged-over area capable of commercial utilization. The maximum period of any privilege to harvest timber is twenty-five (25) years, renewable for a period, not exceeding twenty-five (25) years, necessary to utilize all the remaining commercial quantity or harvestable timber either from the unlogged or logged-over area.

It shall be a condition for the continued privilege to harvest timber under any license or license agreement that the licensee shall reforest all the areas which shall be determined by the Bureau. Section 28. Size of forest concessions. Forest lands shall not be held in perpetuity. The size of the forest lands which may be the subject of timber utilization shall be limited to that which a person may effectively utilize and develop for a period of fifty (50) years, considering the cutting cycle, the past performance of the applicant and his capacity not only to utilize but, more importantly, to protect and manage the whole area, and the requirements of processing plants existing or to be installed in the region. Forest concessions which had been the subject of consolidations shall be reviewed and re-evaluated for the effective implementation of protection, reforestation and management thereof under the multiple use and sustained yield concepts, and for the processing locally of the timber resources therefrom. B. WOOD-PROCESSING Section 29. Incentives to the wood industry. The Department Head, in collaboration with other government agencies and the wood industry associations and other private entities in the country, shall evolve incentives for the establishment of an integrated wood industry in designated wood industry centers and/or economic area. The President of the Philippines, upon the recommendations of the National Economic Development Authority and the Department Head, may establish wood industry import-export centers in selected locations: Provided, That logs imported for such centers shall be subject to such precaution as may be imposed by the Bureau, in collaboration with proper government agencies, to prevent the introduction of pests, insects and/or diseases detrimental to the forests. Section 30. Rationalization of the wood industry. While establishment of wood-processing plants shall be encouraged, their locations and operations shall be regulated in order to rationalize the industry. No new processing plant shall be established unless adequate raw material is available on a sustained-yield basis in the area where the raw materials will come from. The Department Head may cancel, suspend, or phase-out all uneconomical wood-processing plants which are not responsive to the rationalization program of the government. Section 31. Wood wastes, weed trees and residues. Timber licensees shall be encouraged and assisted to gather and save the wood wastes and weed trees in their concessions, and those with processing plants, the wood residues thereof, for utilization and conversion into wood by-products and derivatives. Section 32. Log production and processing. Unless otherwise decreed by the President, upon recommendation of the National Economic Development Authority, the entire production of logs by all licensees shall, beginning January 1, 1976, be processed locally. A licensee who has no processing plant may, subject to the approval of the Director, enter into a contract with a wood processor for the processing of his logs. Wood processors shall accept for processing only logs cut by, or purchased

from, licensees of good standing at the time of the cutting of logs. C. REFORESTATION Section 33. Forest lands to be reforested. The following shall be reforested and covered with suitable and sufficient trees, to wit: (a) Bare or grass-covered tracts of forest lands with at least fifty per cent (50%) slope; (b) Bare or grass-covered tracts of forest lands with less than fifty per cent (50%) slope, but with soil so highly erodible as to make grass cover inadequate for soil erosion control; (c) Brushlands or tracts of forest lands generally covered with brush, which need to be developed to increase their productivity; (d) Open tracts of forest lands with slopes or gradients generally exceeding fifty per cent (50%), interspersed with patches of forest each of which is less than two hundred fifty (250) hectares in area; (e) Denuded or inadequately-timbered areas proclaimed by the President as forest reserves and reservations as critical watersheds, national parks, game refuge, bird sanctuaries, national shrines, national historic sites; (f) Inadequately-stocked concessions;

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(g) Portions of areas covered by pasture leases or permits having a slope of at least fifty per cent (50%); and (h) River banks, easements, road rights-of-ways, deltas, swamps, former river beds, and beaches. Section 34. Industrial Tree Plantations and Tree Farms. A lease for a period of twenty-five (25) years, renewable for another period not exceeding twenty-five (25) years, for the establishment of an industrial tree plantation or a tree farm may be granted by the Department Head upon recommendation of the Director to any person qualified to develop and exploit natural resources, over timber or forest lands of the public domain categorized in Section 33 hereof, with a minimum area of One Thousand (1,000) hectares for industrial tree plantation and One Hundred (100) hectares for tree farm; Provided, That the size of the area that may be granted under each category shall in each case depend upon the capacity of the lessee to develop or convert the area into productive condition within the term of the lease; Provided, further, That no lease shall be granted within critical watersheds. Scattered areas of less than One Hundred (100) hectares each may be leased for the establishment of tree farms to different qualified persons upon a showing that if developed as an integrated unit these areas can be economically exploited: Provided, That it shall be a condition of the lease that such persons organize themselves into a cooperative to ensure the orderly management thereof. The lease may be granted under such terms and conditions as the Department Head may prescribe, taking into account, among others, the raw material needs of forest-based industries and the maintenance of a wholesome ecological balance.

Reforestation projects of the Government, or portions thereof which, upon field evaluation, are found to be more suitable for, or can be better developed as, industrial tree plantations or tree farms in terms of benefits to the Government and the general surrounding area, may be the subject of the lease under this section. Section 35. Priority. Over any suitable area covered by a timber license agreement, or a pasture lease agreement or permit, the priority to establish industrial forest plantation or tree farm shall be given to the holder thereof. The priority herein granted must, however, be availed of within a reasonable period to be determined by the Department Head, otherwise, the area shall be declared open to any qualified person and consequently segregated from the holder's area. Section 36. Incentives. To encourage qualified persons to engage in industrial tree plantation and/or tree farming, the following incentives are granted: (a) Payment of a nominal filing fee of fifty centavos (P0.50) per hectare; (b) No rental shall be collected during the first five (5) years from the date of the lease; from the sixth year to the tenth year, the annual rental shall be fifty centavos (P0.50) per hectare; and thereafter, the annual rental shall be one peso (P1.00) per hectare: Provided, That lessees of areas long denuded as certified by the Director and approved by the Department Head, shall be exempted from the payment of rental for the full term of the lease which shall not exceed twenty-five (25) years; for the first five (5) years following the renewal of the lease, the annual rental shall be fifty centavos (P0.50) per hectare; and thereafter, the annual rental shall be one peso (P1.00) per hectare. (c) The lessee shall pay forest charges on the timber and other forest products grown and cut or gathered in an industrial tree plantation or tree farm equivalent to six percent (6%) current market value thereof; (d) Sale at cost of seedlings and free technical advice and assistance to persons who will develop their privately-owned lands into industrial tree plantation or tree farm; (e) Exemption from the payment of the percentage tax levied in Title V of the National Internal Revenue Code when the timber and forest products are sold, bartered or exchanged by the lessee whether in their original state or not; (f) The Board of Investments shall, notwithstanding its nationality requirement on projects involving natural resources, classify industrial tree plantations and tree farms as pioneer areas of investment under its annual priority plan, to be governed by the rules and regulations of said Board. A lessee of an industrial tree plantation or tree farm may either apply to the Board of Investments for the tax and other benefits thereunder, or avail of the following benefits: 1. Amounts expended by a lessee in the development and operation of an industrial tree plantation or tree farm prior to the time when the production state is reached, may, at the option of said lessee, be regarded as ordinary and necessary business expenses or as capital expenditures; and 2. Deduction from an investor's taxable income for the year, of an annual investment allowance equivalent to thirty-three and one-third per cent (33-1/3%) of his actual investment during the year in an enterprise engaged in industrial tree

plantation or tree farm: Provided, That such investment shall not be withdrawn for a period of at least ten (10) years from the date of investment: Provided, further, That should the investment be withdrawn within such period, a tax equivalent to double the amount of the total income tax rebate resulting from the investment allowance shall be payable as a lump sum in addition to the income tax due from the taxpayer for the year the investment was withdrawn. (g) Except when public interest demands the alteration or modification, the boundaries of an area covered by an industrial tree plantation or tree farm lease, once established on the ground, shall not be altered or modified; and (h) A lessee shall not be subject to any obligation prescribed in, or arising out of, the provisions of the National Internal Revenue Code on withholding of tax at source upon interests paid on borrowings incurred for development and operation of the industrial tree plantation or tree farm. The Department Head may provide other incentives in addition to those hereinabove granted to promote industrial tree plantation and tree farms in special areas such as, but not limited to, those where there are no roads or where roads are inadequate, or areas with rough topography and remote areas far from processing plants. All amounts collected under this section shall accrue to a special deposit of the Bureau to be used for reforestation of critical watersheds or degraded areas and other development activities, over and above the general appropriation of the said Bureau. D. FOREST PROTECTION Section 37. Protection of all resources. All measures shall be taken to protect the forest resources from destruction, impairment and depletion. Section 38. Control of concession area. In order to achieve the effective protection of the forest lands and the resources thereof from illegal entry, unlawful occupation, kaingin, fire, insect infestation, theft, and other forms of forest destruction, the utilization of timber therein shall not be allowed except through license agreements under which the holders thereof shall have the exclusive privilege to cut all the allowable harvestable timber in their respective concessions, and the additional right of occupation, possession, and control over the same, to the exclusive of all others, except the government, but with the corresponding obligation to adopt all the protection and conservation measures to ensure the continuity of the productive condition of said areas, conformably with multiple use and sustained yield management. If the holder of a license agreement over a forest area expressly or impliedly waives the privilege to utilize any softwood, hardwood or mangrove species therein, a license may be issued to another person for the harvest thereof without any right of possession or occupation over the areas where they are found, but he shall, likewise, adopt protection and conservation measures consistent with those adopted by the license agreement holder in the said areas. Section 39. Regulation of timber utilization in all other classes of lands and of wood-processing plants. The utilization of timber in alienable and disposable lands, private lands, civil reservations, and all lands containing standing or felled timber, including those under the jurisdiction of other government agencies, and the establishment and operation of saw-mills and other wood-processing plants, shall be regulated in order to prevent them from being used as

shelters for excessive and unauthorized harvests in forest lands, and shall not therefore be allowed except through a license agreement, license, lease or permit. Section 40. Timber inventory in other lands containing standing or felled timber. The Bureau shall conduct a one hundred per cent (100%) timber inventory in alienable and disposable lands and civil reservations immediately upon classification or reservation thereof. No harvest of standing or felled timber in alienable and disposable lands, private lands, civil reservation, and all other lands, including those under the jurisdiction of other government agencies, shall be allowed unless a one hundred per cent (100%) timber inventory has been conducted thereon. Section 41. Sworn timber inventory reports. All reports on timber inventories of forest lands, alienable and disposable lands, private lands, civil reservations, and all lands containing standing or felled timber must be subscribed and sworn to by all the forest officers who conducted the same. Section 42. Participation in the development of alienable and disposable lands and civil reservations. The privilege to harvest timber in alienable and disposable lands and civil reservations shall be given to those who can best help in the delineation and development of such areas in accordance with the management plan of the appropriate government exercising jurisdiction over the same. The extent of participation shall be based on the amount of timber which may be harvested therefrom. Section 43. Swamplands and mangrove forests. Strips of mangrove forest bordering numerous islands which protect the shoreline, the shoreline roads, and even coastal communities from the destructive force of the sea during high winds and typhoons, shall be maintained and shall not be alienated. Such strips must be kept from artificial obstruction so that flood water will flow unimpeded to the sea to avoid flooding or inundation of cultivated areas in the upstream. All mangrove swamps set aside for coast-protection purposes shall not be subject to clear-cutting operation. Mangrove and other swamps released to the Bureau of Fisheries and Aquatic Resources for fishpond purposes which are not utilized, or which have been abandoned for five (5) years from the date of such release shall revert to the category of forest land. Section 44. Visitorial power. The Department Head may, by himself or thru the Director or any qualified person duly designated by the Department Head, investigate, inspect and examine records, books and other documents relating to the operation of any holder of a license agreement, license, lease, or permit, and its subsidiary or affiliated companies, to determine compliance with the terms and conditions thereof, this Code and pertinent laws, policies, rules and regulations. Section 45. Authority of forest officers. When in the performance of their official duties, forest officers, or other government officials or employees duly authorized by the Department Head or Director, shall have free entry into areas covered by a license agreement, license, lease or permit. Forest officers are authorized to administer oath and take acknowledgment in official matters connected with the functions of their office, and to take testimony in official

investigations conducted under the authority of this Code and the implementing rules and regulations. Section 46. Scaling stations. In collaboration with appropriate government agencies, the Bureau shall establish control or scaling stations at suitably located outlets of timber and other forest products to insure that they were legally cut or harvested. Section 47. Mining operations. Mining operations in forest lands shall be regulated and conducted with due regard to protection, development and utilization of other surface resources. Location, prospecting, exploration, utilization or exploitation of mineral resources in forest reservations shall be governed by Mining laws, rules and regulations. No location, prospecting, exploration, utilization, or exploitation of mineral resources inside forest concessions shall be allowed unless proper notice has been served upon the licensees thereof and the prior approval of the Director, secured. Mine tailings and other pollutants affecting the health and safety of the people, water, fish, vegetation, animal life and other surface resources, shall be filtered in silt traps or other filtration devices and only clean exhausts and liquids shall be released therefrom. Surface-mined areas shall be restored to as near its former natural configuration or as approved by the Director prior to its abandonment by the mining concern. Section 48. Mineral Reservations. Mineral reservations which are not the subject of mining operations or where operations have been suspended for more than five (5) years shall be placed under forest management by the Bureau. Mineral reservations where mining operations have been terminated due to the exhaustion of its minerals shall revert to the category of forest land, unless otherwise reserved for other purposes. Section 49. Roads and other infrastructure. Roads and other infrastructure in forest lands shall be constructed with the least impairment to the resource values thereof. Government agencies undertaking the construction of roads, bridges, communications, and other infrastructure and installations inside forest lands, shall coordinate with the Bureau, especially if it will involve the utilization or destruction of timber and/or other forest resources, or watershed disturbance therein, in order to adopt measures to avoid or reduce damage or injury to the forest resource values. They shall likewise extend assistance in the planning and establishment of roads, wharves, piers, port facilities, and other infrastructure in locations designated as woodprocessing centers or for the convenience of wood-based industries. In order to coincide and conform to government plans, programs, standards, and specifications, holders of license agreements, licenses, leases and permits shall not undertake road or infrastructure construction or installation in forest lands without the prior approval of the Director, or in alienable and disposable lands, civil reservations and other government lands, without the approval of the government agencies having administrative jurisdiction over the same.

All roads and infrastructure constructed by holders of license agreements, licenses, leases and permits belong to the State and the use and administration thereof shall be transferred to the government immediately upon the expiration or termination thereof. Prior thereto the Bureau may authorize the public use thereof, if it will not be detrimental to forest conservation measures. Where roads are utilized by more than one commercial forest user, the Bureau shall prescribe the terms and conditions of joint use including the equitable sharing of construction and/or maintenance costs, and of the use of these roads by other parties and the collection of such fees as may be deemed necessary. Section 50. Logging roads. There shall be indiscriminate construction of logging roads. Such roads shall be strategically located and their widths regulated so as to minimize clear-cutting, unnecessary damage or injury to healthy residuals, and erosion. Their construction must not only serve the transportation need of the logger but, most importantly, the requirement to save as many healthy residuals as possible during cutting and hauling operations. Section 51. Management of occupancy in forest lands. Forest occupancy shall henceforth be managed. The Bureau shall study, determine and define which lands may be the subject of occupancy and prescribed therein, an agro-forestry development program. Occupants shall undertake measures to prevent and protect forest resources. Any occupancy in forest land which will result in sedimentation, erosion, reduction in water yield and impairment of other resources to the detriment of community and public interest shall not be allowed. In areas above 50% in slope, occupation shall be conditioned upon the planting of desirable trees thereon and/or adoption of other conservation measures. Section 52. Census of kaingineros, squatters, cultural minorities and other occupants and residents in forest lands. Henceforth, no person shall enter into forest lands and cultivate the same without lease or permit. A complete census of kaingineros, squatters, cultural minorities and other occupants and residents in forest lands with or without authority or permits from the government, showing the extent of their respective occupation and resulting damage, or impairment of forest resources, shall be conducted. The Bureau may call upon other agencies of the government and holders of license agreement, license, lease and permits over forest lands to participate in the census. Section 53. Criminal Prosecution. Kaingineros, squatters, cultural minorities and other occupants who entered into forest lands before the effectivity of this Code, without permits or authority, shall not be prosecuted: Provided, That they do not increase their clearings: Provided, further, That they undertake, within two (2) months from the notice thereof, the activities which will be imposed upon them by the Bureau in accordance with a management plan calculated to conserve and protect forest resources. E. SPECIAL USES

Section 54. Pasture in forest lands. No forest land 50% in slope or over may be utilized for pasture purposes. Forest lands which are being utilized for pasture shall be maintained with sufficient grass cover to protect soil, water and other forest resources. If grass cover is insufficient, the same shall be supplemented with trees or such vegetative cover as may be deemed necessary. The size of forest lands that may be allowed for pasture and other special uses shall be determined by rules and regulations, any provision of law to the contrary notwithstanding. Section 55. Wildlife. Wildlife may be destroyed, killed, consumed, eaten or otherwise disposed of, without the necessity of permit, for the protection of life, health, safety and property, and the convenience of the people. However, the Director may regulate the killing and destruction of wildlife in forest lands in order to maintain an ecological balance of flora and fauna. Section 56. Recreation. The Bureau shall, in the preparation of multiple-use management plans, identify and provide for the protection of scenic areas in all forest lands which are potentially valuable for recreation and tourism, and plan for the development and protection of such areas to attract visitors thereto and meet increasing demands therefor. The construction and operation of necessary facilities to accommodate outdoor recreation shall be done by the Bureau with the use of funds derived from rentals and fees for the operation and use of recreational facilities by private persons or operators, in addition to whatever funds may be appropriated for such purposes. Section 57. Other special uses of forest lands. Forest lands may be leased for a period not exceeding twenty-five (25) years, renewable upon the expiration thereof for a similar period, or held under permit, for the establishment of sawmills, lumber yards, timber depots, logging camps, rightsof-way, or for the construction of sanatoria, bathing establishments, camps, salt works, or other beneficial purposes which do not in any way impair the forest resources therein. F. QUALIFICATIONS Section 58. Diffusion of benefits. The privilege to utilize, exploit, occupy, or possess forest lands, or to conduct any activity therein, or to establish and operate wood-processing plants, shall be diffused to as many qualified and deserving applicants as possible. Section 59. Citizenship. In the evaluation of applications of corporations, increased Filipino equity and participation beyond the 60% constitutional limitation shall be encouraged. All other factors being equal, the applicant with more Filipino equity and participation shall be preferred. Section 60. Financial and technical capability. No license agreement, license, lease or permit over forest lands shall be issued to an applicant unless he proves satisfactorily that he has the financial resources and technical capability not only to minimize utilization, but also to practice forest protection, conservation and development measures to insure the perpetuation of said forest in productive condition.

Section 61. Transfers. Unless authorized by the Department Head, no licensee, lessee, or permittee may transfer, exchange, sell or convey his license agreement, license, lease or permit, or any of his rights or interests therein, or any of his assets used in connection therewith. The licensee, lessee, or permittee shall be allowed to transfer or convey his license agreement, license, lease or permit only if he has not violated any forestry law, rule or regulation; has been faithfully complying with the terms and conditions of the license agreement, license, lease or permit; the transferee has all the qualifications and none of the disqualifications to hold a license agreement, license, lease or permit; there is no evidence that such transfer or conveyance is being made for purposes of speculation; and the transferee shall assume all the obligations of the transferor. The transferor shall forever be barred from acquiring another license agreement, license, lease or permit. Section 62. Service contracts. The Department Head, may in the national interest, allow forest products licensees, lessees, or permittees to enter into service contracts for financial, technical, management, or other forms of assistance, in consideration of a fee, with any foreign person or entity for the exploration, development, exploitation or utilization of the forest resources, covered by their license agreements, licenses, leases or permits. Existing valid and binding service contracts for financial, technical, management or other forms of assistance are hereby recognized as such. Section 63. Equity sharing. Every corporation holding a license agreement, license, lease or permit to utilize, exploit, occupy or possess any forest land, or conduct any activity therein, or establish and operate a wood-processing plant, shall within one (1) year after the effectivity of this Code, formulate and submit to the Department Head for approval a plan for the sale of at least twenty percent (20%) of its subscribed capital stock in favor of its employees and laborers. The plan shall be so implemented that the sale of the shares of stock shall be effected by the corporation not later than the sixth year of its operation, or the first year of the effectivity of this Code, if the corporation has been in operation for more than 5 years prior to such effectivity. No corporation shall be issued any license agreement, license, lease or permit after the effectivity of this Code, unless it submits such a plan and the same is approved for implementation within the sixth year of its operation. The Department Head shall promulgate the necessary rules and regulations to carry out the provisions of this section, particularly on the determination of the manner of payment, factors affecting the selling price, establishment of priorities in the purchase of the shares of stock, and the capability of the deserving employees and laborers. The industries concerned shall extend all assistance in the promulgation of policies on the matter, such as the submission of all data and information relative to their operation, personnel management, and asset evaluation. G. REGULATORY FEES Section 64. Charges, fees and bonds. The Department Head, upon recommendation of the Director, shall fix the amount of charges, rental, bonds and fees for the different kinds of utilization, exploitation, occupation, possession, or activity inside forest lands, the filing and processing of applications therefor, the issuance and renewal of license agreements, licenses, leases and permits, and for other services; Provided,

That all fees and charges presently being collected under existing laws and regulations shall continue to be imposed and collected until otherwise provided; Provided, further, That timber taken and removed from private lands for commercial purposes shall be exempt from the payment of forest charges.

The Court shall further order the confiscation in favor of the government of the timber or forest products to cut, gathered, collected or removed, and the machinery, equipment, implements and tools used therein, and the forfeiture of his improvements in the area.

Section 65. Authority of Department Head to impose other fees. In addition to the fees and charges imposed under existing laws, rules and regulations, the Department Head is hereby authorized, upon recommendation of the Director and in consultation with representatives of the industries affected, to impose other fees for forest protection, management, reforestation, and development, the proceeds of which shall accrue into a special deposit of the Bureau as its revolving fund for the aforementioned purposes.

The same penalty plus cancellation of his license agreement, lease, license or permit and perpetual disqualification from acquiring any such privilege shall be imposed upon any licensee, lessee, or permittee who cuts timber from the licensed or leased area of another, without prejudice to whatever civil action the latter may bring against the offender.

Section 66. Collection and Disbursement. The collection of the charges and fees above-mentioned shall be the responsibility of the Director or his authorized representative. The Director shall remit his monthly collection of fees and charges mentioned in Section 64 to the Treasurer of the Philippines within the first ten (10) days of the succeeding month; Provided, That the proceeds of the collection of the fees imposed under Section 65 and the special deposit heretofore required of licensees shall be constituted into a revolving fund for such purposes and be deposited in the Philippine National Bank, as a special deposit of the Bureau. The Budget Commissioner and the National Treasurer shall effect the quarterly releases out of the collection accruing to the general fund upon request of the Director on the basis of a consolidated annual budget of a work program approved by the Department Head and the President. In the case of the special deposit revolving fund, withdrawals therefrom shall be effected by the Department Head on the basis of a consolidated annual budget prepared by the Director of a work program for the specific purposes mentioned in Section 65. Section 67. Basis of Assessment. Tree measurement shall be the basis for assessing government charges and other fees on timber cut and removed from forest lands, alienable or disposable lands, and the civil reservations; Provided, That until such time as the mechanics of tree measurement shall have been developed and promulgated in rules and regulations, the present scaling method provided for in the National Internal Revenue Code shall be used. The Director may, with the approval of the Department Head, prescribe a new method of assessment of forest products and collection of charges thereon based upon the result of production cost and market studies undertaken by the Bureau; Provided, That such charges shall not be lower than those now imposed. CHAPTER CRIMINAL OFFENSES AND PENALTIES

IV

Section 68. Cutting, gathering and/or collecting timber or other products without license. Any person who shall cut, gather, collect, or remove timber or other forest products from any forest land, or timber from alienable and disposable public lands, or from private lands, without any authority under a license agreement, lease, license or permit, shall be guilty of qualified theft as defined and punished under Articles 309 and 310 of the Revised Penal Code; Provided, That in the case of partnership, association or corporation, the officers who ordered the cutting, gathering or collecting shall be liable, and if such officers are aliens, they shall, in addition to the penalty, be deported without further proceedings on the part of the Commission on Immigration and Deportation.

Section 69. Unlawful occupation or destruction of forest lands. Any person who enters and occupies or possesses, or makes kaingin for his own private use or for others any forest land without authority under a license agreement, lease, license or permit, or in any manner destroys such forest land or part thereof, or causes any damage to the timber stand and other products and forest growths found therein, or who assists, aids or abets any other person to do so, or sets a fire, or negligently permits a fire to be set in any forest land shall, upon conviction, be fined in an amount of not less than five hundred pesos (P500.00) nor more than twenty thousand pesos (P20,000.00) and imprisoned for not less than six (6) months nor more than two (2) years for each such offense, and be liable to the payment of ten (10) times the rental fees and other charges which would have been accrued had the occupation and use of the land been authorized under a license agreement, lease, license or permit: Provided, That in the case of an offender found guilty of making kaingin, the penalty shall be imprisoned for not less than two (2) nor more than (4) years and a fine equal to eight (8) times the regular forest charges due on the forest products destroyed, without prejudice to the payment of the full cost of restoration of the occupied area as determined by the Bureau. The Court shall further order the eviction of the offender from the land and the forfeiture to the Government of all improvements made and all vehicles, domestic animals and equipment of any kind used in the commission of the offense. If not suitable for use by the Bureau, said vehicles shall be sold at public auction, the proceeds of which shall accrue to the Development Fund of the Bureau. In case the offender is a government official or employee, he shall, in addition to the above penalties, be deemed automatically dismissed from office and permanently disqualified from holding any elective or appointive position. Section 70. Pasturing Livestock. Imprisonment for not less than six (6) months nor more than two (2) years and a fine equal to ten (10) times the regular rentals due, in addition to the confiscation of such livestock and all improvement introduced in the area in favor of the government, shall be imposed upon any person, who shall, without authority under a lease or permit, graze or cause to graze livestock in forest lands, grazing lands and alienable and disposable lands which have not as yet been disposed of in accordance with the Public Land Act; Provided, That in case the offender is a corporation, partnership or association, the officers and directors thereof shall be liable. Section 71. Illegal occupation of national parks system and recreation areas and vandalism therein. Any person who shall, without permit, occupy for any length of time any portion of the national parks system or shall, in any manner, cut, destroy, damage or remove timber or any species of vegetation or forest cover and other natural resources found therein, or shall mutilate, deface or destroy objects of natural beauty or of scenic value within areas in the national parks system, shall be fined not less than two hundred (P200.00) pesos or more than five hundred (P500.00) pesos exclusive of

the value of the thing damaged; Provided, That if the area requires rehabilitation or restoration as determined by the Director, the offender shall also be required to restore or compensate for the restoration of the damage; Provided, Further, That any person who, without proper permit shall hunt, capture or kill any kind of bird, fish or wild animal life within any area in the national parks system shall be subject to the same penalty; Provided, Finally, That the Court shall order eviction of the offender from the land and the forfeiture in favor of the Government of all timber or any species of vegetation and other natural resources collected or removed, and any construction or improvement made thereon by the offender. If the offender is an association or corporation, the president or manager shall be directly responsible and liable for the act of his employees or laborers. In the event that an official of a city or municipal government is primarily responsible for detecting and convicting the violator of the provisions of this Section, fifty per centum (50%) of the fine collected shall accrue to such municipality or city for the development of local parks. Section 72. Destruction of wildlife resources. Any person violating the provisions of Section 55 of this Code, or the regulations promulgated thereunder, shall be fined not less than one hundred (P100.00) pesos for each such violation and in addition shall be denied a permit for a period of three (3) years from the date of the violation. Section 73. Survey by unauthorized person. Imprisonment for not less than two (2) nor more than four (4) years, in addition to the confiscation of the implements used in the violation of this section including the cancellation of the license, if any, shall be imposed upon any person who shall, without permit to survey from the Director, enter any forest lands, whether covered by a license agreement, lease, license, or permit, or not, and conduct or undertake a survey for whatever purpose. Section 74. Misclassification and survey by government official or employee. Any public officer or employee who knowingly surveys, classifies, or recommends the release of forest lands as alienable and disposable lands contrary to the criteria and standards established in this Code, or the rules and regulations promulgated hereunder, shall, after an appropriate administrative proceeding, be dismissed from the service with prejudice to re-employment, and upon conviction by a court of competent jurisdiction, suffer an imprisonment of not less than one (1) year and a fine of not less than one thousand, (P1,000.00) pesos. The survey, classification or release of forest lands shall be null and void. Section 75. Tax declaration on real property. Imprisonment for a period of not less than two (2) nor more than four (4) years and perpetual disqualification from holding an elective or appointive office, shall be imposed upon any public officer or employee who shall issue a tax declaration on real property without a certification from the Director of Forest Development and the Director of Lands or their duly designated representatives that the area declared for taxation is alienable and disposable lands, unless the property is titled or has been occupied and possessed by members of the national cultural minorities prior to July 4, 1955. Section 76. Coercion and influence. Any person who coerces, influences, abets or persuades the public officer or employee referred to in the two preceding sections to commit any of the acts mentioned therein shall suffer imprisonment of not less than one (1) year and pay a fine of five hundred (P500.00) pesos for every hectare or a fraction thereof so improperly surveyed, classified or released.

Section 77. Unlawful possession of implements and devices used by forest officers. Imprisonment for a period of not less than (2) nor more than four (4) years and a fine of not less than one thousand pesos (P1,000.00), nor more than ten thousand (P10,000.00) pesos in addition to the confiscation of such implements and devices, and the automatic cancellation of the license agreement, lease, license or permit, if the offender is a holder thereof, shall be imposed upon any person who shall, without authority from the Director or his authorized representative, make, manufacture, or has in his possession any government marking, hatchet or other marking implement, or any marker, poster, or other devices officially used by officers of the Bureau for the marking or identification of timber or other products, or any duplicate, counterfeit, or imitation thereof, or make or apply a government mark on timber or any other forest products by means of any authentic or counterfeit device, or alter, deface, or remove government marks or signs, from trees, logs, stumps, firewoods or other forest products, or destroy, deface, remove or disfigure any such mark, sign, poster or warning notices set by the Bureau to designate the boundaries of cutting areas, municipal or city forest or pasture, classified timber land, forest reserve, and areas under the national park system or to make any false mark or imitation of any mark or sign herein indicated; Provided, That if the offender is a corporation, partnership or association, the officers and directors thereof shall be liable. Section 78. Payment, collection and remittance of forest charges. Any person who fails to pay the amount due and payable under the provisions of this Code, the National Internal Revenue Code, or the rules and regulations promulgated thereunder, shall be liable to the payment of a surcharge of twenty-five per centum (25%) of the amount due and payable. Any person who fails or refuses to remit to the proper authorities said forest charges collectible pursuant to the provisions of this Code or the National Internal Revenue Code, or who delays, obstructs or prevents the same, or who orders, causes or effects the transfer or diversion of the funds for purposes other than those specified in this Code, for each such offense shall, upon conviction, be punished by a fine of not exceeding one hundred thousand pesos (P100,000.00) and/or imprisonment for a period of not exceeding six (6) years in the discretion of the Court. If the offender is a government official or employee, he shall, in addition, be dismissed from the service with prejudice to reinstatement and with disqualification from holding any elective or appointive office. If the offender is a corporation, partnership or association, the officers and directors thereof shall be liable. Section 79. Sale of wood products. No person shall sell or offer for sale any log, lumber, plywood or other manufactured wood products in the international or domestic market unless he complies with grading rules and established or to be established by the Government. Failure to adhere to the established grading rules and standards, or any act of falsification of the volume of logs, lumber, or other forest products shall be a sufficient cause for the suspension of the export, sawmill, or other license or permit authorizing the manufacture or sale of such products for a period of not less than two (2) years. A duly accredited representative of the Bureau shall certify to the compliance by the licensees with grading rules. Every dealer in lumber and other building material covered by this Code shall issue an invoice for each sale of such material and such invoice shall state that the kind, standard and size of

material sold to each purchaser in exactly the same as described in the invoice. Any violation of this Section shall be sufficient ground for the suspension of the dealer's license for a period of not less than two (2) years and, in addition thereto, the dealer shall be punished for each such offense by a fine of not less than two hundred pesos (P200.00) or the total value of the invoice, whichever is greater. Section 80. Arrest; Institution of criminal actions. A forest officer or employee of the Bureau shall arrest even without warrant any person who has committed or is committing in his presence any of the offenses defined in this Chapter. He shall also seize and confiscate, in favor of the Government, the tools and equipment used in committing the offense, and the forest products cut, gathered or taken by the offender in the process of committing the offense. The arresting forest officer or employee shall thereafter deliver within six (6) hours from the time of arrest and seizure, the offender and the confiscated forest products, tools and equipment to, and file the proper complaint with, the appropriate official designated by law to conduct preliminary investigations and file informations in court. If the arrest and seizure are made in the forests, far from the authorities designated by law to conduct preliminary investigations, the delivery to, and filing of the complaint with, the latter shall be done within a reasonable time sufficient for ordinary travel from the place of arrest to the place of delivery. The seized products, materials and equipment shall be immediately disposed of in accordance with forestry administrative orders promulgated by the Department Head. The Department Head may deputize any member or unit of the Philippine Constabulary, police agency, barangay or barrio official, or any qualified person to protect the forest and exercise the power or authority provided for in the preceding paragraph. Reports and complaints regarding the commission of any of the offenses defined in this Chapter, not committed in the presence of any forest officer or employee, or any of the deputized officers or officials, shall immediately be investigated by the forest officer assigned in the area where the offense was allegedly committed, who shall thereupon receive the evidence supporting the report or complaint. If there is prima facie evidence to support the complaint or report, the investigating forest officer shall file the necessary complaint with the appropriate official authorized by law to conduct a preliminary investigation of criminal cases and file an information in Court. PD No. 1775:

AMENDING SECTION EIGHTY OF PRESIDENTIAL DECREE NUMBERED SEVEN HUNDRED FIVE, AS AMENDED, OTHERWISE KNOWN AS THE "REVISED FORESTRY CODE OF THE PHILIPPINES."

WHEREAS,

it is of common knowledge that only few criminal cases are being filed against violators of the forestry laws, rules and regulations because of the apparent lack of manpower in the prosecuting arm of the Bureau of Forestry Development which predicament could not be feasibly augmented due to the present economic situation of the country;

WHEREAS,

it is of common knowledge that only few criminal cases are being filed against violators of the forestry laws, rules and regulations because of the apparent lack of manpower in the prosecuting arm of the Bureau of Forestry Development which predicament could not be feasibly augmented due to the present economic situation of the country; WHEREAS,

Section 80 of the "Revised Forestry Code of the Philippines", or any other law, rule and regulation does not authorize members of the Philippine Constabulary/Integrated National Police to file complaints against forest law violators except when they are lawfully deputized by the Minister of Agriculture and Natural Resources pursuant to the said Code; THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby degree that: NOW,

SECTION 1. Section 80 of Presidential Decree No. 705 is amended to read as follows: 80. Arrest: actions. "Sec.

institution

of

criminal

A forest officers or employee of the Bureau or any personnel of the Philippines Constabulary/ Integrated National Police shall arrest even without warrant any person who has committed or committing in his presence any of the offenses defined in this Chapter. He shall also seize and confiscate, in favor of the Government, the tools and equipment used in committing the offense, and the forest products cut, gathered or taken by the offender in the process committing the offense. The arresting forest officer or employee shall thereafter deliver within six (6) hours from the time of arrest and seizure, the offender and the confiscated forest product, tools and equipment and file the proper complaint with, the appropriate official designated by law to conduct preliminary investigation and file information in Court. If the arrest and seizure are made in the forest, far from the authorities designated by the law to conduct preliminary investigations, the delivery to, and filing of the complaint with, the latter shall be done within a reasonable time sufficient to the place of delivery. The seized products, materials and equipment shall be immediately disposed of in accordance with forestry administrative orders promulgated by the Department Head. The Department Head may deputized any agency, Bering or barrio official, or any qualified person to protect the forest and exercise the power or authority provided for in the preceding paragraph. Reports and complaints regarding the commission of any of the offenses defined in this Chapter, not committed in the presence of any forest officer or employee, or any personnel of the Philippine Constabulary/Integrated National Police or any of the deputized officers of officials, shall immediately be investigated by the forest officer assigned in the area or any

personnel of the Philippine Constabulary/Integrated National Police where the offense was allegedly committed, who shall thereupon receive the evidence supporting the report or complaint. If there is a prima facie evidence to support the complaint or report the investigating forest officer and/ or members of the Philippine Constabulary/Integrated National Police shall file the necessary complaint with the appropriate official authorized by law to conduct a preliminary investigation of criminal case and file an information in Court."

2.1.Delineation, Classification State Forestlands

WHEREAS, logging or any commercial exploitation of forestry resources in old growth forests, proclaimed watersheds and other areas covered by the National Integrated Protected Areas System (NIPAS) is prohibited to ensure the perpetual existence of all native plants and animals;

of

State forestlands shall be identified, classified and delineated/demarcated on the ground and shall constitute the permanent forest estate unless otherwise stipulated by Congress; the same shall be categorized and managed either as primarily for production or as primarily for protection purposes, and in both cases, placed under a formal management scheme.

2.

Conversions of forestlands into non-forestry uses shall be allowed only through an act of Congress and upon the recommendation of concerned government agencies.

2.2. Holistic, Sustainable and Integrated Development of Forestry Resources 1.

The development and management of the Philippines forests and forestlands including the coastal forests shall be for the highest and widest public benefit and shall be based on the inherent productive capacity and sustainable use of these resource for the present and future generation of Filipinos.

2.

The priority development, protection and management activity of any management unit shall be the rehabilitation of open and/or denuded, degraded, fragile forestlands; and slope stabilization and protection to address occurrence of floods, landslides and similar ecological disasters.

3.

The establishment of tree parks, regreening and roadside planting of forest species in open and appropriate spaces shall be prioritized to mitigate worsening urban air quality and global warming.

WHEREAS, Sustainable Forest Management (SFM) is provided in the Global Plan of implementation of the World Summit on Sustainable Development adopted in Johannesburg, as an international strategy for developing and managing forests; WHEREAS, important socio-economic and environmental changes and policy reforms that directly affect the forestry sector have taken place since the issuance in 1975 of Presidential Decree No. 705, otherwise known as the Revised Forestry Code of Philippines, and unless and until otherwise directed by Congress, there is a need to provide guidance to national agencies and instrumentalities on how to best harmonize these policy reforms and make the forestry sector responsive to external changes, and attain SFM in the Philippines;

Demarcation

1.

Executive Order No. 318: PROMOTING SUSTAINABLE FOREST MANAGEMENT IN THE PHILIPPINES WHEREAS, the Constitution provides for the protection and advancement of the right of the people to a balanced and healthy environment in accord with the rhythm and harmony of nature, to protect the Filipino people from disaster like floods or landslide, and from threats to environmental and economic security like wood and water shortage, biodiversity loss, air pollution and drought. Likewise, it provides for the full, efficient and rights-based use of natural resources to abate poverty, promote industrialization and full employment, affirm the diverse cultures of the Filipino, and ensure their availability to present and future generations;

and

2.3. Community-Based Development

Forest

Conservation

and

1.

Community-Based Forest Management (CBFM) shall be the primary strategy in all forest conservation and development and related activities, including joint ventures, production sharing and co-production; it shall be encouraged in all private sector forestry enterprises and ventures.

NOW, THEREFORE, I GLORIA MACAPAGAL ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:

2.

CBFM shall be a collaborative undertaking of the national government and the LGU’s, local peoples, community organizations, civil society organizations (CSO’s), and private business entities.

SECTION 1. Declaration of Policy. It shall be the Policy of the Government to pursue the sustainable management of forests and forestlands in watersheds. Watersheds shall be deemed as ecosystem management units and shall be managed in a holistic, scientific, rights-based, technologybased and community-based manner and observing the principles of multi-use, decentralization and devolution, and active participation of local government units (LGUs), synergism of economic, ecological, social and cultural objectives, and the rational utilization of all resources found therein. It shall likewise be the policy of the Government to promote sound, effective and efficient, globally-competitive and equitable forestry practices in both public and private domains.

3.

Local cultures, values, traditions, religious beliefs and the rights of indigenous peoples to their ancestral lands and domains as promoted and/or defined by existing legislation shall be recognized and respected in all forestry undertakings of the State and the private sector.

WHEREAS, a watershed-based integrated ecosystem management approach is deemed appropriate for SFM due to the interrelationships and interactions between and among the various ecosystems of a watershed such as the uplands and coastal areas:

SECTION 2. Guiding Principles. The pursuit of these policies shall be guided by the following principles:

2.4. Incentives for Enhancing Private Investments, Economic Contribution and Global Competitiveness of Forest-Based Industries 1.

The government shall provide a favorable and stable policy and investment environment-friendly forest based industries, ensure their sustainable raw material supply and encourage value-added processing in-country to boost rural employment and the economy.

2.

Filipino entrepreneurship in encouraged and supported.

3.

A package of incentives and services that are responsive to the development of forests in private and public forestlands shall be adopted to encourage the development of private forests, including the deregulation of privately-developed forests and privately-planted trees and enhancement of capacities of stakeholders to engage in private forest development and related activities.

4.

5.

forestry

shall

be

The development of high-value tree crops and nontimber forest crops in public forestlands, private lands and in home forest gardens shall be promoted and encouraged to enhance economic and ecological benefits and attain self-sufficiency in the country’s wood requirements. Incentives shall be provided to encourage comanagement of forest resources involving national and other government agencies (NGAs/OGAs), LGUs, CSOs, and the private sector.

promoted and institutionalized in the Government service. 2.

Partnerships and collaboration between and among the DENR, NGAs/OGAs, LGUs, professional forestry organizations, local communities, civic groups, CSOs, basic sectors, academic and other research and development institutions and other stakeholders shall be promoted.

3.

Forestry administrative systems and institutions, including research and development, shall be upgraded and modernized.

4.

Academic programs and scientific research shall be harnessed to generate information, technologies and policies that will strengthen national capacities for SFM under the frameworks of watershed ecosystem management (WEM) and CBFM.

5.

Human resources development programs for all stakeholders shall be rationalized and upgraded in support of SFM; forestry extension services by NGAs/OGAs and LGU shall be upgraded and intensified and undertaken with CSOs, to support CBFM, pirvate forestry, forestry co-management enterprises, and the development of forest-based biodiversity.

6.

Forest land use plans shall be incorporated by LGUs in their comprehensive land use plans. National Government agencies shall assist LGUs in this endeavor.

7.

Networks and linkages involved with local and international institutions, CSOs, LGUs, and industries involved in the promotion and practice of SFM shall be strengthened.

2.5 Proper Valuation and Pricing of Forestry Resources and Financing SFM 1.

2.

Mechanism for proper valuation and fair and comprehensive pricing of forest products and services, including water for domestic, industrial, irrigation and power generation, biodiversity and eco-tourism, shall be developed and promoted. Local, regional and national plow-back mechanisms of utilizing proceeds from the use of watersheds, forests and forestlands for ecological and environmental services such as, but not limited to power generation, supplying domestic and irrigation water, and eco-tourism, shall be developed and promoted to finance forest protection, rehabilitation, and development.

3.

Appropriate and doable mechanisms for adopting the principles of environment and natural resources accounting (ENRA) and watershed ecosystems as minimum spatial units of accounts shall be developed and institutionalized.

4.

Innovative financial systems and approaches, such as securitization, bonds and collaborative investments, shall be encouraged to support sustainable forest management and enterprises and the conservation of forest-based biodiversity in the Philippines.

5.

Government investments in and out-sourced financing for forest development such as the application of clean development mechanism (CDM) shall be prioritized in favor of forestlands that serve a significantly large population such as critical watersheds and/or which serve to reduce poverty and inequitable access to forests such as those under CBFM and/or co-management by NGAs/OGAs, LGUs, industries, CSOs, and local communities.

2.6. Institutional Support for SFM 1.

The principles and practices of good governance such as transparency, accountability and participatory decision-making, in transactions, decisions and actions affecting forestry, in all levels, and the policy of streamlining, decentralization, devolution and deregulation shall be adopted,

EO No . 263: ADOPTING COMMUNITY-BASED FOREST MANAGEMENT AS THE NATIONAL STRATEGY TO ENSURE THE SUSTAINABLE DEVELOPMENT OF THE COUNTRY'S FORESTLANDS RESOURCES AND PROVIDING MECHANISMS FOR ITS IMPLEMENTATION WHEREAS, Article II, Section 16 of the 1987 Constitution provides for the protection and advancement of the right of the Filipino people, both men and women, to a healthful and balanced ecology; WHEREAS, Article II, Section 10 provides for the promotion of social justice to all citizens in all phases of national development; WHEREAS, Article XIV, Section 17 mandates the State to recognize and respect the rights of the indigenous peoples to their ancestral domains and consider their customs, traditions and beliefs in the formulation of laws and policies; WHEREAS, Executive Order No. 192, series of 1987, mandates the Department of Environment and Natural Resources (DENR) as the primary government agency responsible for the sustainable management and development of the country's natural resources; WHEREAS, the Philippines 2000 and the government's Social Reform Agenda support people empowerment and the full, meaningful and indispensable participation of communities as immediate stakeholders of the forestland resources in the protection and management of the forest ecosystem;

WHEREAS, the 25-year Master Plan for Forestry Development also recognizes the indispensable role of local communities in forest protection, rehabilitation, development and management, and targets the protection, rehabilitation, management, and utilization of at least 4 million hectares of forestlands, through the community-based forest management strategy;

Sec. 7. In its budget preparation, the DENR shall allot adequate funds to effectively accomplish CBFM targets and shall seek supplementary funding from local and foreign supporting agencies and organizations. DENR shall ensure the inclusion of budgetary allocation for CBFM in the annual General Appropriations Act, pending the passage of the revised Forestry Code.

WHEREAS, entrusting the responsibility for forest rehabilitation, protection, and conservation to the community of stakeholders and affording them equitable access to the forest and coastal resources are viable forestland management strategies as borne by the experience of the DENR and various supporting agencies;

Sec. 8. The DENR shall establish a Community-based Forest Management Special Account (CBFMSA) to support the implementation of the strategy and provide financial and professional incentive system for deserving communities and government personnel.

NOW, THEREFORE, I FIDEL V. RAMOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby order that: Sec. 1. Community-based forest management (herein referred to as CBFM) shall be the national strategy to achieve sustainable forestry and social justice. Sec. 2. The DENR, through its Community and Provincial Environment and Natural Resource Offices, in coordination with the local government units and the Department of Interior and Local Government (DILG) shall, at all times, take into account the needs and aspirations of local communities whose livelihood depends on the forestlands. Sec. 3. Participating organized communities may be granted access to the forestland resources under long term tenurial agreements, provided they employ environment-friendly, ecologically-sustainable, and labor-intensive harvesting methods. Such harvesting methods shall be mentioned under a site-specific management plan of each recipient community and duly approved by the DENR. Sec. 4. The indigenous peoples may participate in the implementation of CBFM activities in recognition of their rights to their ancestral domains and land rights and claims. Sec. 5. A CBFM Steering Committee shall be created immediately and headed by the DENR with members from the Departments of Agriculture, Trade and Industry, Agrarian Reform, Finance, Science and Technology, Labor and Employment, Interior and Local Government, Budget and Management, National Defense and Justice; National Economic Development and Authority; Philippine Commission on Countrywide Development under the Office of the President, Committee on Flagship Programs and Projects of the Office of the President; Presidential Management Staff under the Office of the President; Cooperative Development Authority, and Offices of Northern and Southern Cultural Communities. The Committee may invite representatives from the Philippine Chamber of Commerce, Philippine Wood Products Association, NGO coalition groups, and other public and private organizations to become members of the Steering Committee. The Committee shall formulate and develop policy guidelines that will create incentives and conditions necessary to effectively carry out community-based forest management strategy. Accordingly, members of the CBFM Steering Committee should, at least, be represented by concerned Assistant Secretaries or heads of bureaus and agencies. Sec. 6. The DENR shall work with local governments, people's organizations (POs), non-government organizations (NGOs), religious groups, business and industry, and other concerned organizations to ensure that communities are empowered to initiate and achieve the objectives of this Order.

Sec. 9. The DENR may source local and international grants and donations for the establishment of the CBFM Special Account. Other sources of fund may later be determined by the CBFM Steering Committee subject to existing government regulations. Sec. 10. The DENR shall support and set up jointly with relevant colleges and universities, private and public organizations, arrangements for a community forestry training program for members of participating units, such as people's organizations, non-government organizations, local government units, and other government personnel. Sec. 11. Within six months after the signing of this Order, the DENR, in consultation with government financial institutions, such as the Development Bank of the Philippines (DBP), the Land Bank of the Philippines (LBP), GSIS and the SSS, shall effect the creation of favorable financing mechanisms for access by communities and organizations in the pursuit of the CBFM strategy and its sub-strategies such as community training and empowerment, enterprise development, agroforestry development, tree plantations, and other nonforest-based alternative livelihood systems. Sec. 12. The DENR Secretary shall issue new rules, regulations, procedures, and guidelines necessary to implement this Order and repeal or modify existing ones consistent with the policies set forth by the CBFM Steering Committee. Sec. 13. The DENR Secretary shall, within six months from the signing of this Order, submit to the Office of the President, a National Comprehensive Community Forestry Action Plan, which embodies the Department's short, medium and longterm plans. The action plan shall be discussed and approved by the CBFM Steering Committee prior to its submission to the President. Sec. 14. All previous executive and administrative issuances which are inconsistent herewith are repealed or amended accordingly.

Republic Act No. 9175 : Chain Saw Act of 2002 Section 2. Declaration Policy. – It is the policy of the State consistent with the Constitution, to conserve, develop and protect the forest resources under sustainable management. Toward this end, the State shall pursue an aggressive forest protection program geared towards eliminating illegal logging and other forms of forest destruction which are being facilitated with the use of chain saws. The State shall therefore regulate the ownership, possession, sale, transfer, importation and/or use of chain saws to prevent them from being used in illegal logging or unauthorized clearing of forests.

Section 3. Definition of Terms. - As used in this Act, the term: (a) "Chain saw" shall refer to any portable power saw or similar cutting implement, rendered operative by an electric or internal combustion engine or similar means, that may be used for, but is not limited to, the felling of trees or the cutting of timber; (b) "Chain saw dealer" shall refer to a person, natural or juridical, engaged in the manufacture, importation, distribution, purchase and/or sale of chain saws; (c) "Department" shall refer to the Department of Environment and Natural Resources; and (d) "Secretary" shall refer to the Secretary of the Department of Environment and Natural Resources. Section 4. Persons Authorized to Manufacturer, Sell and Import Chain Saws. - Chain saws shall only be sold and/or imported by manufacturers, dealers and/or private owners who are duly authorized by the Department. Section 5. Persons Authorized to Possess and Use a Chain Saw. - The Department is hereby authorized to issue permits to possess and/or use a chain saw for the felling land/or cutting of trees, timber and other forest or agro-forest products to any applicant who: (a) has a subsisting timber license agreement, production sharing agreement, or similar agreements, or a private land timber permit; (b) is an orchard and fruit tree farmer; (c) is an industrial tree farmer; (d) is a licensed wood processor and the chain saw shall be used for the cutting of timber that has been legally sold to said applicant; or (e) shall use the chain saw for a legal purpose. Agencies of the government that use chain saws in some aspects of their functions must likewise secure the necessary permit from the Department before operating the same. Section 6. Registration of Chain Saws. - Within a period of three (3) months from the effectivity hereof, all persons who own or are otherwise in possession of chain saws must register the same with the Department, through any of its Community Environment and Natural Resources Office, which shall issue the corresponding registration certificate or permit if it finds such persons to be qualified hereunder. Every permit to possess and/or use a chain saw for legitimate purpose shall be valid for two (2) years upon issuance: Provided, That permits to possess and use chainsaw issued to non-commercial orchard and fruit tree farmers shall be valid for a period of five (5) years upon issuance. For this purpose, the Department shall be allowed to collect reasonable registration fees for the effective implementation of this Act. Section 7. Penal Provisions. (a) Selling, Purchasing, Re-selling, Transferring, Distributing or Possessing a Chain Saw Without a Proper Permit. - Any person who sells, purchases, transfer the ownership, distributes or otherwise disposes or possesses a chain saw without first securing the necessary permit from the Department shall be punished with imprisonment of four (4) years, two (2) months and one (1) day to six (6) years or a fine of not less than Fifteen thousand pesos (P15,000.00) but not more Thirty thousand pesos (30,000.00) or both at the discretion of the court, and the chain saw/s confiscated in favor of the government.

(2) Unlawful Importation or Manufacturing of Chain Saw. - Any person who imports or manufactures a chain saw without obtaining prior authorization from the Department shall be punished by imprisonment of not less than one (1) month nor more than six (6) months and a fine of not less than One thousand pesos (P1,000.00) for more than Four thousand pesos (P4,000.00). (3) Tampering of Engine Serial Number. - Any person who is found to have defaced or tampered with the original registered engine serial number of any chain saw unit shall be punished by imprisonment of not less than one (1) month nor more than six (6) months and a fine of not less than One thousand pesos (P1,000.00) nor more than Four thousand pesos (P4,000.00). (4) Actual Unlawful Use of Chain Saw. - Any person who is found to be in possession of a chain saw and uses the same to cut trees and timber in forest land or elsewhere except as authorized by the Department shall be penalized with imprisonment of six (6) years and one (1) day to eight (8) years or a fine of not less that Thirty thousand pesos (P30,000.00) but not more than Fifty thousand pesos (P50,000.00) or both at the discretion of the court without prejudice to being prosecuted for a separate offense that may have been simultaneously committed. The chain saw unlawfully used shall be likewise confiscated in favor of the government. If the violation under this Section is committed by or through the command or order of another person, partnership or corporation, the penalties herein provided shall likewise be imposed on such other person, or the responsible officer(s) in such partnership or corporation. If the offender is a public official or employee, in addition to the above penalties, he shall be removed from office and perpetually disqualified from holding any public office. The chain saws confiscated under this Section shall be sold at public auction to qualified buyers and the proceeds thereof shall go to the Department. Section 8. Reward. - Any person who voluntarily gives information leading to the recovery or confiscation of an unregistered chain saw and the conviction of persons charged thereof shall be entitled to a reward equivalent to twenty person (20%) of the value of the chain saw unit(s). The Department is authorized to include in its budget the amount necessary to carry out the purpose of this Section. Section 9. Authority of the Secretary. - To effectively implement the provisions of this Act, the Secretary shall issue the implementing rules and regulations within ninety (90) days upon approval of this Act. He shall likewise organize an office within the Department to ensure that requirements imposed by this Act may be complied with by qualified persons, within the shortest possible time, at the least possible expense. In the Province of Palawan, the provisions of this Act shall be implemented by the Palawan Council for Sustainable Development pursuant to Republic Act No. 7611 or the Strategic Environmental Plan for Palawan. Section 10. Revocation of Registration and Permit. - The Secretary may revoke any Certificate of Registration or permit previously issued to a person found violating the provisions of this Act, or the rules and regulations issued pursuant thereto.

Section 11. Joint Congressional Oversight Committee. - To monitor and oversee the implementation of this Act, including the approval of the rules and regulations issued pursuant hereto, there is hereby created a Joint Congressional Oversight Committee to be composed of the Chairpersons of the Senate Committee on Environment and Natural Resources and the House Committee on Natural Resources as Chairperson and Co-Chairperson, five (5) members of each of the Senate and the House of Representatives who shall be designated by the Senate President and the Speaker of the House of Representatives as members: Provided, That the two (2) of the five (5) senators and two (2) of the five (5) House members shall be nominated by the respective Minority Leaders of the Senate and the House of Representatives.